Apple tells investors they will miss revenue estimate by $9 Billion

Apple has just sent out a letter to its investors. This is a practice that every major company needs to perform to make their investors aware of their plans. However, Apple has some not-so-good news to share with their investors. In the letter, Apple reveals that they will miss the revenue estimates of the year 2018 by $9 Billion. This miss in revenue estimate is mainly due to poor iPhone sales. Now, Apple has revealed some of the reasons which they believe are the factors for poor iPhone sales.

One of those reasons according to Apple is the slowing down economy in China. Apple says that Greater China is facing a decline in their economy. This means that the sales of iPhones in China have remained poor for the last year.

Also, Apple acknowledges that the competition from Chinese companies such as Huawei has also increased. This also is one of the reasons for the poor sales of Apple products. On the other hand, Apple also gave other reasons for the poor sales of iPhones.

Apple CEO Tim Cook
Apple CEO Tim Cook

Apple has blamed customers for the poor sales in iPhones. According to the company, customers have changed their upgrade cycles. Earlier, Apple customers used to upgrade their devices in a year or two. However, Apple claims that the upgrade cycles are getting longer now. This means that customers are holding on to their older iPhones longer than expected. Also, Apple has revealed that holiday sales have been “lower than expected”.

One other reason that Apple has revealed is slightly surprising for everyone. Apple has claimed that battery replacement cost reduction is also the factor for lower iPhone sales. Early last year, Apple reduced prices of battery replacement from $79 to $29 for iPhones that are out-of-warranty. According to Apple, users are replacing the battery with this lower price benefit and not upgrading to latest iPhones.

Via: YourStory