Apple just reported its Q4 earnings, and the company's CFO is attributing its disappointing revenue guidance to a "softness" in China and other parts of the world.
Apple expects $50-$53 billion in sales in Q1 2016, which is less than Wall Street wanted, and, at its midpoint, an 11% drop compared to the same time last year.
Analysts were looking for revenue guidance of $55.7 nillion, which would have been the first revenue decline in Apple's modern history.
This was a bigger decline than that.
Luca Maestri, Apple’s CFO told Bloomberg that Apple is being affected by the economic climate in other parts of the world, particularly a "softness" in China, and especially Hong Kong.
On the company's earnings call, CEO Tim Cook said that Apple had its best results ever in Greater China in December, with revenue growing 14% over last year. He also reiterated the growing signs of "softness," but also said that Apple is "maintaining investment plans" in the region.
Last year, Apple launched its music streaming service in China, as well as the Apple Watch.
“You need to take into account the business opportunities that we have, but also the realities of an economic environment that is not ideal right now,” Maestri told Bloomberg's Adam Satariano.
Apple's guidance proved analysts' theory that Apple might finally be running out of room to grow.
Although Apple's revenue from China grew this quarter, Maestri's comments and the guidance hints that the company doesn't expect huge sales there next quarter:
And here's a different view of revenue by region.
