Stocks tumble as iPhone sales slide in China

Here's Tim Cook's Memo to Employees About iPhone Sales Slowdown

To boost iPhone sales, Apple launched a "GiveBack" trade-in promotion offer for its new iPhone XS and iPhone XR devices in the U.S.in November.

The rare warning of disappointing results from Apple reinforced investors' fears that the world's second-biggest economy is losing steam and that trade tensions between Washington and Beijing are making things worse.

Trump said Apple has gone up "hundreds of percent" since he's been president, but added that he wants the company to make its iPhone and other products in the US.

Toni Sacconaghi of Bernstein Research highlighted in an analyst note that Apple did not outright attribute the slowdown of it's iPhone sales to the smartphones' high price tags.

"No, I'm not", Trump said after he was asked at a White House news conference about Apple's revenue warning this week.

Although Cook pointed fingers at China almost a dozen times in his letter, many analysts believe Apple's underlying issues are far more complex than a slowdown in one market. Apple is also tasked with exploring how to more effectively break into market like India with a low-priced option. But he said then that he "would not put China in that category" of countries with troubled growth. "Until it changes this pricing strategy, it is unlikely to see market share growth and will most likely see a gradual contraction as iPhone users upgrade at slower rates", said Richardson. Copper, which is used in construction and wiring, fell 2.1 percent to $2.57 a pound. -China trade tensions drove the S&P 500 Index to the brink of a bear market. The current 13-inch MacBook Pro with Touch Bar has a starting price of $1,799, whereas the version of the MacBook Pro prior to the refresh had started at $1,299.

Shares of USA -based Apple suppliers and chipmakers including Cirrus Logic Inc CRUS.O , Skyworks Solutions Inc SWKS.O , Analog Devices ADI.O , Broadcom Inc AVGO.O , NXP Semiconductors NV NXPI.O and Micron Technology Inc MU.O all tumbled.

Any new product offering from Apple is unlikely to be revealed before September, when the company traditionally unveils its new iPhones.

Apple and Foxconn declined to comment on the reports. On its website in China, Apple now advertises the iPhone XR for 4,399 yuan with the trade-in of an iPhone 7 Plus. He said China's smartphone market is feeling a particularly tight squeeze.

Apple now expects to achieve sales turnover of approximately $84 billion in the final quarter of 2018 (Q4), compared with the company's earlier revenue forecasts of between $89 billion and $93 billion.

"I think this is probably the first major downgrade that we've seen for fourth-quarter earnings, although I suspect this isn't the last one", he said in an interview.

At least 15 Wall Street analysts lowered their price targets on Apple's stock before markets opened today, with one slashing its price target by $75 to $200 per share.

Economic experts have blamed Chinese consumer concerns on the country's tariff dispute with the United States as well as an increase in news about falling automobile and real estate sales in China.

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