Apple CEO, Tim Cook has released an official press release for the revision of the guidance set for the Quarter 1, 2019.
Contrary to the previous set revenue between $89 billion and $93 billion in Q1 2019, Apple now expects revenue of $84 billion. Its gross margin remains around 38 percent (around the same as the earlier 38 to 38.5 percent) with operating expenses of approximately $8.7 billion.
Additionally, other expenses have increased from $300 million to $550 million.
Among the four factors that Apple cites for the revenue generation, the Cupertino tech major has suggested that Greater China has been a major factor for its declined revenue generation, affecting over 100 percent of its worldwide year-on-year revenue decline.
Furthermore, China’s low economy in 2018 is another factor for the low revenue. However, Apple believes that its presence in China will be a good one as the iOS developer community in China is doing pretty well.
Apple also suggested that fewer carrier subsidies along with cheap iPhone battery replacements also led to change in the revenue guidance for Q1 2019.
Other factors include the varied time of the iPhone launches each year and the increased US Dollar rate.
Despite the low revenue, Apple’s other segments (Services, Mac, iPad, Wearables/Home/Accessories) have had a combined increased revenue rated at 19 percent year-over-year.
Additionally, Apple expects approximately $130 billion in net cash by the end of Q1 2019.
Also read: Netflix Pleads Fans Not To Hurt Themselves With ‘Bird Box Challenge’