Budget Live

Budget Live: Apple braces for impact as outlook dims

Apple’s stock has taken a hit as the company braces for a challenging economic environment.

Shares of Apple Inc. fell sharply in premarket trading on Monday as the tech giant warned of a slowdown in iPhone sales and other headwinds that are likely to weigh on its financial performance in the coming quarters.

The Cupertino, California-based company said in a statement that it expects revenue for the current quarter to come in below its previous forecast, citing a stronger-than-expected US dollar and ongoing supply chain disruptions.

The news sent Apple’s stock down more than 3% in premarket trading, wiping out about $80 billion in market capitalization.

Apple’s warning is the latest sign that the global economy is slowing down, and that even the world’s largest companies are not immune to the impact of rising inflation, interest rates, and geopolitical uncertainty.

In its statement, Apple said that it expects revenue for the current quarter to be between $90 billion and $94 billion, down from its previous forecast of $91 billion to $97 billion.

The company also said that it expects gross profit margin to be between 42.5% and 43.5%, down from its previous forecast of 43.0% to 44.0%.

Apple’s warning comes as the company is facing a number of challenges, including the ongoing global chip shortage, the war in Ukraine, and the rising cost of living.

The company has also been criticized for its reliance on China for manufacturing, which has made it vulnerable to supply chain disruptions.

Despite the challenges, Apple remains one of the world’s most valuable companies, with a market capitalization of over $2.5 trillion.

The company has a loyal customer base and a strong brand, which should help it weather the current economic storm.

However, Apple’s warning is a reminder that even the biggest companies are not immune to the impact of the global economy.