Apple shocked Wall Street with an extremely rare revenue warning late on Wednesday, blaming economic weakness in China and disappointing iPhone upgrades in the developed world for a shortfall of as much as 10 per cent from its previous expectations.
The news wiped more than 7 per cent from the company’s shares in after-market trading and stoked investor concerns over the outlook for the global economy.
In an open letter to investors, Tim Cook, chief executive, tried to minimise the extent of the shortfall, writing that Apple had predicted only “slight revenue growth” from the previous year’s $88.3bn.
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