Apple shares dive; rare revenue warning drags global markets


But that was when consumers commonly purchased a phone every two years, a cycle that has elongated and might prompt buyers to want a more "future proof" device, said Glenn Lurie, CEO of Synchronoss Technologies and the former head of AT&T's wireless unit. Regardless of how Tim Cook spins it, this is not merely because of China's economic slowdown or customers' decisions to upgrade less frequently.

But some analysts cautioned that Apple's troubles may be more company specific than global in nature.

The White House didn't immediately respond to a request for comment.

In the latest fiscal year, ended September 29, unit sales of the iPhone were essentially flat from the prior year, while iPhone revenue expanded 18 percent to $166.7 billion.

For much of the past year, the trade war between U.S. and China disrupted the flow of good worth hundreds of billion dollars and sparked fears of a global economic slowdown.

The clash reflects American anxiety about China's emergence as a competitor in telecoms, solar power and other technologies and complaints by Washington, Europe and other trading partners that Beijing's tactics violate its market-opening obligations.

Blais said investors should brace for a continued roller coaster ride as markets compare news and upcoming earnings with expectations.

Global financial markets felt the shockwaves as Apple shares logged their biggest intra-day percentage fall in six years, sending the company's stock market value to under $700 billion, well below its $1.1 trillion October peak.

Shanghai - Chinese telecom giant Huawei has punished two employees for posting a New Year greeting on the company's official Twitter account using an iPhone made by arch rival Apple, an internal memo showed. Some pessimistic economists have even projected an imminent global recession.

Apple disputes the claim that it mostly makes its products in China.

Global stocks climbed Friday, staging a partial rebound from Thursday's steep losses after China confirmed a two-day meeting with US representatives to work to resolve the countries' trade dispute.

The stock price of Apple Inc. sank 9.86 percent on Thursday, wiping out 73.79 billion dollars of market capitalization.

The rise in tech and media stocks come after the broader market was dragged down Thursday, in part fueled by Apple's announcement that it would miss revenue targets for the year-end 2018 quarter. And Apple's trouble navigating China backs fears that the slowdown in the world's No. 2 economy is already hurting profits for multinational companies.

The economy created 2.6 million jobs a year ago compared to 2.2 million in 2017. Both the global powers are now under pressure to end a trade war that is hurting their economies as well as global financial markets.

"The thing investors are wrestling with is this disconnect between a US economy growing at a pretty good pace and valuations pricing in so much downside", said Edward Park, deputy chief investment officer at Brooks Macdonald.

Apple's stark warning reinforced multiple investor concerns. "Build those plants in the United States".

Netflix and Intel rose 4.4 percent and 4.5 percent, respectively. Amazon (AMZN) rose 5%, Netflix (NFLX) rose 10% and Alphabet (GOOGL) was 4.3% higher. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets. He also noted that the economic deceleration was worsened by the tensions in U.S. The Dow added 578 points, or 2.6 per cent, to 23,254 after rising as much as 691 points.

The talks are crucial as the US stock market continues to be volatile.