Opening Bell 1.3.19

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Sour Apple [The Water Coolest]

Apple inexplicably deciding in November that it will no longer share iPhone quarterly unit sales reporting is starting to make a whole lot more sense ...

The company revised its Q4 revenue forecast (ending December) downward, in an unprecedented move that sent panic through markets after hours. You see, the Street had been anticipating quarterly revenue of between $89B and $93B ... but Apple is expecting to come in closer to $84B.

Despite being halted in after-hours trading briefly the stock still went all "hold my beer," falling almost 8%.

But why?

According to the man who undoubtedly has Steve Jobs rolling in his grave, Apple swung and missed in China. Cook didn't mince words when he blamed the ongoing trade war and cited shrinking demand in China due to a slowing economy and increased competition from the likes of Huawei.

Of course, there was plenty of blame to go around. Jobs Jr. also pointed fingers at decreased carrier subsidies and fewer phone upgrades, especially in emerging markets. You mean there isn't a huge demand for $1k phones in rural India?

I've got good news and I've got bad news

The good news is that the MacBook maker's service business revenue jumped 27% and its smartwatch and AirPod sales grew at a rate of 50%. The bad news is that all of that isn't enough to offset the loss of iPhone sales in China.

Apple slashes revenue guidance, says iPhone sales are weak in China — shares tank [CNBC]

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