Apple has cut its sales forecast for its latest quarter, with chief executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around U.S.-China trade relations.
The revenue cut raises questions about whether Apple is being punished by Chinese officials in favour of local rivals such as Huawei, whose pricey smart phones compete with the iPhone and whose telecommunications equipment US officials are considering banning.
Cook told CNBC that Apple products have not been targeted by the Chinese government, though some consumers may have elected not to buy an iPhone or other Apple device because it is an American company.
"The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it," Cook said.
Some analysts, however, questioned the impact of Apple's own actions.
The company forecast $84 billion in revenue for its fiscal first quarter ended December 29, which is below analysts' estimate of $91.5 billion.
"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.
"In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad."
Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007.
Apple shares, which had been halted ahead of the announcement, skidded 7.7 percent in after-hours trade, dragging the company's market value below $700 billion.
