According to the Apple boss, "more than 100 per cent" of its missed revenue could be attributed to a sales decline in China, as demand for its iPhone and iPad products weakened and fewer customers chose to upgrade their smartphones. Specifically, Cook said that poor iPhone sales in China was the main reason behind Apple's revised guidance.
"China is the biggest beneficiary of Apple, more than us".
The company said it now sees fiscal first-quarter revenue of $84 billion, below the $89 billion to $93 billion that it had previously expected.
Although Cook pointed fingers at China almost a dozen times in his letter, many analysts believe Apple's underlying issues are far more complex than a slowdown in one market. It's the first time since 2002 that Apple issued a reduction in its quarterly revenue forecast.
Apple did not immediately respond to a request for comment on Thursday. The drop in sales was also not entirely a surprise.
Any new product offering from Apple is unlikely to be revealed before September, when the company traditionally unveils its new iPhones.
With Apple's slumping stock taking a lot of the market down with it, the White House seemingly felt compelled to chime in on the matter.
Apple publicly warned previous year that Trump's would increase the price of its products. "It will be interesting to see how Apple shares react if there's a China trade agreement".
First, and perhaps most significant is this - How many iPhones does Apple sell to people simply because the battery in their existing iPhone is worn?
Companies that make heavy machinery such as construction equipment are facing less demand as China's economy, the largest in the world after the US, loses strength.
Over the past year, the U.S. and China slapped new tariffs on hundreds of billions of dollars' worth of imports in a trade war that threatens to snarl multinational companies' supply lines and reduce demand for their products. While this achievement was widely celebrated, it wasn't long before the bad news started piling in, leading to a substantial decline in Apple stock.
And Apple has "failed to acknowledge the possibility that current iPhone prices are simply too high", he wrote. But, he noted that Apple "appears to have lost material share in China in Q4 despite its new product launch, and that Apple has struggled in China before, underscoring the fickleness and lower lock-in of Chinese consumers".
Overall, export growth decelerated to 5.4 percent over a year earlier, less than half October's 12.6 percent rate.
"The firm alleges that Cook's letter blaming business in China for the revenue shortfall is contrary to what he told investors during the company's fourth quarter conference call on November 1, where Cook is quoted as saying, "[Our] business in China was very strong last quarter.
The yield on the 10-year Treasury fell to 2.64 percent.