The news of the dropping of the iPhone sales is perhaps true where the trading tension between the United States and China is considered the reason behind the lower iPhone sales than earlier anticipated in the year 2018. The economic slowdown in China has brought down the first slowdown of Apple’s revenue in the last 16 years. Apple being the affluent prototype, leading higher sales with greater interest among consumers around the globe is raising concerns among investors who might be affected by this decelerated degree of China’s economy.
Where America generated the highest revenue during 2018, Europe, Japan and Rest of Asia Pacific had significant growth as compared to the annual revenue generated by Apple during 2015, whereas China has witnessed a significant fall in the iPhone sales between the years 2015 and 2018. The estimated revenue for Apple was anticipated to be around USD 90 Billion but according to Apple, the expected revenue for the period would be around USD 80 Billion. The official statement is yet to be generated by the end of January 2019.
With an interview with CNBC, Mr. Timothy Donald Cook, CEO-Apple Inc. stated that economic slowdown of the Chinese economy (primarily in the Greater China) during the second half is the reason behind the shortfall of iPhone revenue. With Donald Trump imposing tariffs on Chinese Goods, Mr. Cook further pointed out the trade tensions between the United States and China that are putting additional pressure on their economy. Despite being told by Trump administration that there won’t be additional tariffs on iPhone, Mr. Cook is concerned about the trade war that can affect the economy as well as Apple. Apple further fears about the government of China that can attribute to the delays in its flow of goods and services.