Dow Jones drops 660 points after Apple forecast adjustment

Apple's board of directors named Tim Cook as the company's chief executive officer in 2011

Apple's stock price dropped nearly 10 percent Thursday, closing the day at $142.19, the company's biggest single-day loss in six years.

The China slowdown comes as Apple faces other obstacles in some of its biggest markets.

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

Since the arrest last month, at the request of the United States, there have been sporadic reports of Chinese consumers shying away from Apple products. The market value of Apple at Thursday's open was around $680 million. The reason? "China's economy began to slow in the second half of 2018." Wow.

Some analysts, however, questioned the impact of Apple's own actions, such as its unyielding pursuit of high selling prices for its products. The revenue revision, which came late Wednesday, led markets lower around the world and also triggered a slump for Asian suppliers and a wave of lower price targets from Wall Street. In announcing the new forecast, Cook said the Chinese smartphone market is contracting and noted that foot traffic to Apple retail stores has been down in recent months. Tech shares took a 1.7% hit.

Business Insider reports that the NY law firm Bernstein Liebhard has begun to attempt to gather support from Apple investors for a class-action lawsuit against the tech giant over their failure to warn investors about the lack of iPhone demand. While this is still quite a large sum, the company expected to bring in revenue between $89 billion and $93 billion. "It will be interesting to see how Apple shares react if there's a China trade agreement". In the broader market, the S&P 500 futures fell 1.5 percent. "I think the pricing aspect plays a bigger role when the competitive pressures are intensifying in China".

PRECURSORS TO A WARNING Apple's move was not entirely a surprise. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets. But Cook specifically said he "would not put China in that category" of countries with troubled growth.

Analysts are adding Apple's predictions and their effects to fears of an economic slowdown.

Automakers such as Ford Motor Co, Hyundai Motor Co and Nissan Motor Co all previously said they planned to cut production in the country.

Cook also cited the trade war between the USA and China as another factor.

A senior White House economic adviser said he expected trade uncertainty to hit earnings at many US companies, but that sales at Apple and others with large exposure to China would recover once Washington and Beijing strike a trade deal.

But some investors were heartened by Apple's plans on using its cash pile.

Others advised Cook to stop pointing the finger at China, and instead fix the flaws in Apple services and work on new products.

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