Apple drops USD 55 billion in value due to fewer iPhone upgrades

Tim Cook admitted that there were fewer iPhone upgrades than expected. As a result, the value of the company drops USD 55 billion in value.

iPhone XS

After cook made the announcement, shares of the company fell as much as 8 percent. It wiped up to USD 55 billion of the company's value.

Lower an anticipated iPhone sales in China

The lower sales from the holiday quarter is primarily due to the "lower than anticipated" iPhone sales in China. The lower sales is in China is most likely due to the ongoing trade way between China and the United sales.

Related: Foxconn dismisses 50,000 workers as Apple cuts production plan

In a letter Cook stated that "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China."

Cook also stated that there are fewer number of people upgrade to the new iPhones is not as strong as they hoped. Apple's decision to offer USD 29 battery replacements for the iPhones is a factor as well.

The result, Apple now expects revue for the three months in December will be down to USD 84 billion from 89 or 93 billion.

This hurts as the iPhone is the company's main money making product accounting 60 percent of Apple's total sales.

See also: Samsung realizes tough competition, says Q4 2018 earnings likely dip 28.71 percent

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Sources: CNN