Cook blamed the lowered forecast on several different factors, including the timing of its latest generation iPhone launches, a strong U.S. dollar creating foreign exchange headwinds, supply constraints, and economic weakness in some emerging markets.
If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China.
While this itself is a confirmation that iPhone sales aren't going exactly as planned, Apple CEOTim Cook explained in an interview with CNBC that partly to blame for this poor performance of the 2018 generation is the trade tension between the United States and China.
It may be tempting to pick up Apple on this dip, but investors should be patient as the U.S. economy looks poised for a sharp slowdown in 2019 and 2020. The company has been dogged in recent weeks by reports of falling orders among its suppliers and questions about the strength of demand for the new, lower-priced iPhone XR.
Fourth, we expected economic weakness in some emerging markets.
But the decline didn't start in the second half of the year, when Apple reported a problem in iPhone sales.
Slumping financial markets seemed to hurt consumer confidence in China, he said, "with traffic to our retail stores and our channel partners in China declining as the quarter progressed".
The chief executive pointed to slowing growth in China, the world's second-biggest economy, as the key factor.
In a letter to investors, Apple CEO Tim Cook pointed to a slowing economy, particularly in China. The company previously projected $89 billion-to-$93 billion in revenue.
In some developed markets, iPhone upgrades also were not as strong as we thought they would be.
Apple's share price did increase by roughly 110% from the day after the 2016 election to its all-time high on October 3. "Our other products category was even stronger than the overall company number". Cook chalked it up to multiple factors, including macroeconomic challenges, fewer carrier subsidies and reduced pricing for iPhone battery replacements.
Despite the current challenges in China, Cook wrote that Apple still has a "bright future" there.