First time in 16 years on Wednesday because of worst iPhone sales in China Apple reduced its revenue expectations an unexpected slowing of China’s economy.
Apple shares glide 7.7% in after an hours trade retractile the company’s market value below $700 billion. In the broader market fell 1.5%. In the US government bond market, a typical safe-haven, the yield on the benchmark 10- year, which moves inversely to the bond’s price plunge to an 11-month low.
“The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchiseJames Cordwell (analyst at Atlantic Equities)
“The iPhone is something that everyone knows and buys, and if people aren’t buying it, then that’s a pretty good sign they’re having a hard time.”Moody’s Analytics
In Cook letter he mentioned himself that Apple has $130 Billion in net cash and its intends to continue its efforts to reduce that cash balance to net zero, which the company has so far accomplished through dividend increases and share buybacks.