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I think the big question is is this an issue for Apple alone? They explicitly write about a sharp turndown in China. The guidances drops from 89-93 to 84 (abo

by chvid 8y ago

I think the big question is is this an issue for Apple alone? They explicitly write about a sharp turndown in China. The guidances drops from 89-93 to 84 (about 8%). From what they are writing that all can be accounted for by the drop of revenue in China. Since China accounts for around 1/5 of Apple's revenue - the drop must have been around 40%-50%. Which is a lot for a single quarter. Also notice the reaction in the forex market. That certainly indicates that this is a broader issue.

TheOtherHobbes 8y ago
It's a broader issue but Apple is more exposed to it, because [large percentage] of recent growth has been in China. In the bigger picture Trump has decided that a trade war with China is a good idea, so of course there are going to be unpleasant consequences. Cook's reign has been rather miserly - pay more for less. It's been an effective short-term strategy for investor returns, but it hasn't created a solid foundation for future expansion, and has also given users very little to be proud of. Where does Apple want to be five years from now? iPhone XIIIS? MacBook Hydrogen? Mac Pro Gold Professional Edition? There's only so far you can push that boat before the lustre fades.
- chvid 8y ago
  I think there is still room for expansion ... in principle at least. Apple market share can still grow in established markets (what percentage of laptops are macs, what percentage of phones are ios). Emerging markets; China, India, Africa can still grow for Apple. And then of course they can innovate; find new product categories, services ...
  - sumedh 8y ago
    > Emerging markets; China, India, Africa can still grow for Apple. Indian market for Apple has been shrinking because of the ridiculous prices for Apple charges in India. Samsung, One Plus and others now dominate there.
- mike10010100 8y ago
  > In the bigger picture Trump has decided that a trade war with China is a good idea, so of course there are going to be unpleasant consequences. There is also a massive slowdown of the Chinese economy that doesn't seem to have anything to do with the trade war. https://theweek.com/speedreads/815565/data-reportedly-signals-chinas-economic-slowdown-might-worse-than-beijing-suggests https://theweek.com/speedreads/815565/data-reportedly-signal...

by chvid 8y ago

TheOtherHobbes 8y ago

It's a broader issue but Apple is more exposed to it, because [large percentage] of recent growth has been in China. In the bigger picture Trump has decided that a trade war with China is a good idea, so of course there are going to be unpleasant consequences. Cook's reign has been rather miserly - pay more for less. It's been an effective short-term strategy for investor returns, but it hasn't created a solid foundation for future expansion, and has also given users very little to be proud of. Where does Apple want to be five years from now? iPhone XIIIS? MacBook Hydrogen? Mac Pro Gold Professional Edition? There's only so far you can push that boat before the lustre fades.

chvid 8y ago
I think there is still room for expansion ... in principle at least. Apple market share can still grow in established markets (what percentage of laptops are macs, what percentage of phones are ios). Emerging markets; China, India, Africa can still grow for Apple. And then of course they can innovate; find new product categories, services ...
- sumedh 8y ago
  > Emerging markets; China, India, Africa can still grow for Apple. Indian market for Apple has been shrinking because of the ridiculous prices for Apple charges in India. Samsung, One Plus and others now dominate there.
mike10010100 8y ago
> In the bigger picture Trump has decided that a trade war with China is a good idea, so of course there are going to be unpleasant consequences. There is also a massive slowdown of the Chinese economy that doesn't seem to have anything to do with the trade war. https://theweek.com/speedreads/815565/data-reportedly-signals-chinas-economic-slowdown-might-worse-than-beijing-suggests https://theweek.com/speedreads/815565/data-reportedly-signal...