Apple announced on Wednesday that it will release quarterly earnings for the first quarter of 2019 on January 29. Company executives are expected to announce a rare revenue forecast reduction due to weak iPhone sales.
Apple announced in an update to its Investor Relations webpage that the quarterly earnings report will be followed by a conference call on Tuesday, January 29 at 2:00 p.m. Pacific / 5:00 p.m. Eastern.
Apple’s CEO Tim Cook and CFO Luca Maestri are expected to participate in a conference call that will provide details on the company’s recently revised revenue projections.
Cook stated in a letter to investors earlier today that Apple is on track to generate $84 billion in revenue for the crucial first fiscal quarter of 2019, a decrease from the original forecast of $89 billion to $93 billion. In large part, the reduction is attributed to weak iPhone demand in China and unspecified emerging markets.
“Lower-than-expected iPhone sales, primarily in Greater China, account for the entirety of our revenue shortfall relative to our guidance and much more than our entire year-over-year revenue decline,” said Cook.
Specifically, Apple failed to anticipate a slowdown in China’s economy, which was exacerbated by rising U.S.-China trade tensions.
In addition to macroeconomic factors and dollar strength-related price increases, Cook attributed the revenue shortfall to miscalculated demand for upgrades. Specifically, the executive stated that inexpensive battery replacements and a reduction in carrier subsidies are impeding the typical upgrade cycle.
Apple has not lowered its forecast for the current quarter in over 15 years.