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Apple admits that victory – Demand for the company's most profitable product declines



Such disclosure was made in a letter to Apple's Chief Executive Tim Cook's CEO. He points out that the company's sales in October-December will be much lower than the company's and analysts' forecasts.

Apple is currently forecasting a trade of $ 84 billion ($ 73.7 billion) for that period. Analysts surveyed by FactSet predicted that sales would increase 9% to 91.3 billion dollars.

The decline in sales volume is mainly explained by the situation in China, where economic growth has slowed down and Apple has fought fierce competition from domestic manufacturers such as Huawei and Xiaomi.

Similarly, Cook admits that consumers in other markets do not buy so many new iPhone models that the company hoped for. This can partly be explained by the high cost of these phones.

This news led Apple to lower its stock price on Wednesday by 7%, but since early October, when investors still expressed high expectations for new iPhone models, the company's share price dropped by 32%.

Analysts explain that Apple must now find a way to restore Wall Street's confidence and prevent a rapid downturn that has lost 350 billion dollars to shareholders in just three months.

In November, the company said it would not disclose more information about the number of iPhones sold each quarter and that it immediately translates such a decision as an attempt to hide a slow but steep decline in sales.

Analysts believe Apple has made a mistake in deciding to continue selling high-end handsets on the Chinese market, allowing competitors with much cheaper alternatives that are still working well.

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