One for the AAPL traders
- Apple cuts Q1 revenue guidance
- sees Q1 revenue around USD84bn (from 91.3bn)
- cites significant impact from EM weakness
More from Apple on the cut:
- First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4'18 - placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1'18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1'19, and this played out broadly in line with our expectations.
- Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.
- Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during 01. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.
- Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected.
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yen is gaining on this … 'risk' currencies not doing too much as yet … UPDATE … ok here we go, AUD down a few pips now …. AUD/JPY barometer getting the double hit lower
