AAPL Stock Recoups Losses Incurred After Tim Cook Slashed Apple’s Revenue Guidance

AAPL shares are currently trading above the $157 mark on the
intraday market, recouping virtually
all losses incurred
since Apple CEO Tim Cook
slashed Apple’s revenue guidance by up to $9 billion
for the
first quarter of its 2019 fiscal year.


AAPL closed at $157.92 on January 2, immediately prior to Cook
revealing the shortfall in an after-hours
letter to shareholders
, and is now trading just cents below
that level. The stock has gradually recovered over the past two
weeks since establishing a new 52-week low of $142 on January
3.


Apple originally guided for revenue of between $89 billion and
$93 billion in the three-month period ending in December, but
revised its estimate to $84 billion due to “fewer iPhone
upgrades” than it anticipated, primarily due to “significantly
greater” economic weakness than it projected in the Greater China
region.

The letter sparked concerns among some investors and analysts
that Apple has reached “peak iPhone,” especially given Apple’s
revelation that it will
no longer disclose unit sales
in its quarterly earnings
reports going forward.

While the iPhone accounts for around two-thirds of Apple’s
revenue, the company has repeatedly touted the continued growth
of its services, including the App Store, Apple Music, iCloud,
iTunes, and so forth, which combined for a nearly 19 percent
increase in revenue on a year-over-year basis in the quarter.

Apple is widely expected to
launch a streaming TV service this year
that will likely
boost the revenue of that category even further.

In his letter to shareholders, Cook said Apple is undertaking
and accelerating multiple initiatives to improve its results,
including making it simple to trade in a phone at its stores.
Back in November, Apple launched a promotion
offering up to $100 in extra trade-in credit
towards a new
iPhone XR or iPhone XS.

AAPL will report its earnings for the first quarter of fiscal
2019
on January 29
, followed by a conference call to discuss the
results at 2 p.m. Pacific Time.

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