The last time Apple reported earnings results, it was the most valuable public company in the world. Today, it’s fourth on the list.
What a difference three months makes.
Apple (AAPL) stock is down about 30% since the last time it reported earnings in early November. Investors are worried about the future of the company’s core business: the iPhone.
On a conference call with analysts for the last earnings report, Apple announced it would stop reporting how many iPhones, iPads and Macs it sells each quarter. The move sparked fears that Apple expects iPhone shipments to begin declining. Less than two weeks later, iPhone parts suppliers began cutting sales outlooks, which raised more alarms.
Then came the biggest red flag of all. On Jan. 2, Apple CEO issued a stark warning to investorsthat the company would miss its revenue target for the final quarter of 2018 by a wide margin – as much as $9 billion below the high end of its earlier guidance.
The reason: weak iPhone sales, primarily in China.