Apple is the new Nokia

Apple CEO Tim Cook leaves the stage after speaking at a high school

Greater China, a region that includes the mainland, Hong Kong and Taiwan, accounted for most of the revenue shortfall, but iPhone upgrades also weren't as strong as the company anticipated in some developed markets, Cook said.

But Apple said its revenue miss in China was not due to the production side, but rather the sales side, since Chinese consumers are not buying enough iPhones. Apple blamed weak sales in China for the revised forecast, reinforcing concerns that the country's slowing economy is already hurting earnings for multinational companies.

Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company's most profitable product has lost some of its lustre. Two Hong Kong-listed Apple suppliers' stocks fell after Apple issued its warning, putting them among the worst performers of the day, according to Financial Times.

So what happened? Cook cites a number of factors, including the timing of the newest iPhone launches and supply constraints across some product categories.

At present, trade talks between China and the U.S. have been scheduled to be held in Beijing on January 7-8, according to CNBC.

Stock trading was temporarily halted Wednesday while Apple lowered its guidance. Companies such as General Motors, Caterpillar and Daimler have all said recently that trade tensions and slower growth in China are damaging their businesses. Analysts polled by FactSet had expected Apple's revenue to be about 9 per cent higher - $91.3 billion.

Right-Wing Populist Jair Bolsonaro Sworn In As President Of Brazil
They were surrounded by dozens of guards on horses and plain-clothes bodyguards who ran beside the auto . Right-winger Jair Bolsonaro keen to turn country into bastion of conservatism in Latin America .

In what looks to be an attempt to soften the blow, Cook noted that Apple's services division, which includes apps and music sales, grew its revenue in the December period by 25 percent, to $10.8 billion.

Along with macroeconomic challenges, he wrote, "we believe there are other factors broadly impacting our iPhone performance". In his letter, Cook said that more than 100% of the company's worldwide revenue decline was in China for sales of iPhones, Macs and iPads.

Cook also said that Apple hurt its bottom line when it slashed the price of iPhone battery replacements early past year after it was caught red-handed slowing down older iPhones to preserve their aging batteries. "Don't forget, Apple makes the product in China".

Japanese shares tumbled and Shanghai's benchmark climbed Friday as Asian markets steadied following a technology-led sell-off on Wall Street.

While President Trump's trade war with China isn't helping Apple and other United States technology companies, Ives believes Apple miscalculated by continuing to roll out high-priced phones in China, creating an opening for rivals with less costly alternatives that still worked well.

Analysts see iPhone's high price point and lack of major updates as the major reasons for the Chinese market's lukewarm reaction to its new iPhone releases.

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