The Nikkei Asian Review reported that Apple Inc plans to cut its production for its three new iPhone models by about 10% for the January-March quarter. The company had last week also cut its quarterly sales forecast. The downward revision in the sales forecast was marked by the slowing demand for iPhones in China, the world’s largest smartphone market. Many analysts and consumers have said the new iPhones are overpriced.
Billionaire investor, Warrent Buffet’s Berkshire Hathaway lost more than $4 billion on Thursday after share price of Apple Inc tumbled on warnings of slowing iPhone sales. Buffet’s Berkshire Hathaway which holds more than 252.5 million shares of Apple, is the company’s second-largest investor. Holding in Apple accounts for about 25.7% of Berkshire’s total portfolio and is Buffett’s largest holding. Apple’s stock market value has tumbled to below $700 billion from over $1.1 trillion at its peak in October.
Oil prices crashed by more than 1% on Thursday after analysts warned of an economic slowdown in 2019. International Brent crude futures were down 51 cents, or 0.9 percent, at $54.40 per barrel. Stock and currency markets remained extremely volatile after the US Dollar crashed more than 3% against the Japanese Yen and US tech giant Apple cut its sales forecast. The slowdown in China and turmoil in stock and currency markets is making investors nervous, including in oil markets.
Apple Inc. shares tumbled 7.7% amid a broader sell off after its chief Tim Cook revised the quarterly sales forecast downwards to $84 billion from the original $89-93 billion on the back of slowing iPhone sales in China. The US and China have been embroiled in a global trade war. Cook told CNBC that Chinese consumers may have elected not to buy Apple products because it is an American company and instead opted for local brands like Huawei. However some analysts feel that the company’s high selling prices for its products are also responsible for declining sales.