Apple (AAPL) warned investors to expect lower sales from the holiday quarter due primarily to “lower than anticipated” iPhone sales in China amid an ongoing trade war with the United States, as well as other factors like the company offering cheaper iPhone battery replacements, according to a letter from CEO Tim Cook on Wednesday. The company’s shares were briefly halted after hours before Cook’s letter was made public, and fell as much as 8% when trading resumed. That wiped up to $55 billion off of the company’s stock market value.
Apple recovered from stock losses on Monday after Qualcomm banned the import and sale of most iPhones in China as part of an injunction for alleged patent violations. Apple filed a request for reconsideration with the Chinese court. The claim is part of a larger dispute between the two US companies.
Apple was sued, Thursday, following their Wednesday revelation of a software feature causing older iPhones to work slower. Apple claimed the ‘feature’ was released to occasionally reduce processing power on older devices preventing them from unexpectedly shutting down. Plaintiffs say they never consented to Apple slowing their phones. Apple did not comment on the lawsuit.
In a letter to customers, Thursday, Apple apologized for slowing down older iPhones, saying, ‘We know that some of you feel Apple has let you down. We apologize.’ After facing several lawsuits, Apple said its purpose was to ‘prolong the life’ of devices. Apple will offer battery replacements at a reduced price for one year.
Apple announced, Wednesday, their plan to spend $350 billion to create 20,000 jobs in the United States in the next five years. Taking advantage of a one-time break for companies that bring cash back to the US, under the new tax law, Apple expects to pay $38 billion on cash holdings overseas.
Apple recently announced their new plan to help support advanced manufacturing jobs on US soil. During Trump’s run for presidency he mentioned wanting more manufacturing processes to happen on US soil rather than Chinese, thus creating more jobs for American citizens. Tim Cook, chief executive, said he has already met with and found a company he will invest in.
At the Worldwide Developers Conference by Apple, Chief Executive Tim Cook revealed a slew of Apple operatinig system improvements and new products. Among them were a new operating system for Mac, High Sierra, updates to the Mac lineup, updates to Apple Watch, the next iOS update, iOS 11 and new iPad models. Apple also revealed Home Hub, the smart speaker which rivals Amazon’s Echo.