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Apple's rare sales warning sparks iPhone fatigue fears

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Joseph White
Jan 03, 2019 14:40
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And a rare sales forecast slash may bode poorly for the rest of the year.

In a letter to investors on Wednesday, Apple CEO Tim Cook warned that the company's fiscal first-quarter revenue would be weaker than previously expected.

The weaker holiday season -- a critical period in which most of Apple's iPhones are sold -- will fan growing belief that the company is struggling with consumer fatigue for its popular smartphone and that sales may be on a downward slide.

"iPhone units are likely down, and I believe prices on the more premium, higher-priced phones are down due to holiday discounting," said Patrick Moorhead, an analyst at Moor Insights.

The warning prompted concerns similar to those Apple endured more than a decade ago, when it missed its fiscal fourth-quarter numbers amid an economic downturn.

Then-CEO Steve Jobs broke his practice of skipping analyst calls in order to quell investor fear, reiterating that Apple would be fine.

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Joseph White
Jan 03, 2019 14:40
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