Briefing: Apple cuts sales forecast following weakened China sales 1 min read

Apple Earnings Warning

Hong Kong's Hang Seng rallied 1.2 percent to 25,356.22.

The German case, part of a global patent spat between the two companies, is Qualcomm's third major effort to secure a ban on iPhones over patent-infringement allegations after similar moves in the United States and China.

After multinational companies relied heavily on China for years for growth, warning signs across different industries are beginning to crop up suggesting there are broad, ominous trends gathering force in the world's second largest economy. China is also one of Apple's most important markets, once referred to as a "hypermarket" by Cook.

The selloff in Apple dragged its market capitalization below that of Alphabet Inc and set the stock for its biggest intra-day percentage fall in nearly six years. But he said sales decreased as consumer "uncertainty" grew over the U.S.

The company this week issued a dire warning to investors about its business, announcing that it would miss its sales target for the last quarter of 2018 by at least $5 billion.

He cites a number of reasons for the revised figures, including the timing of iPhone sales, the strength of the dollar, market saturation, and lower than expected numbers of iPhone upgrades - this being partly blamed on the high uptake of Apple's reduced-price battery upgrade program introduced a little over a year ago.

An advertisement for Huawei Mate 20 series is seen outside an Apple store, as customers queue before the store opens on the day the new iPhone XR goes on sale in Shanghai, China October 26, 2018.

The Institute for Supply Management said its index of U.S. manufacturing fell to its lowest level in two years, and new orders have fallen sharply since November.

Airlines were also falling sharply after Delta trimmed its revenue forecast.

More news: North Korea’s Kim wants more summits with Moon next year - Blue House

The yield on the 2-year Treasury note slid to 2.39 percent from 2.50 percent, and the yield on the 10-year note sank to 2.56 percent from 2.66 percent. Natural gas fell 0.4 percent to $2.95 per 1,000 cubic feet. It was down as much as 677 earlier.

In other commodities trading, wholesale gasoline rose 1.8 percent to $1.35 a gallon and heating oil climbed 2.4 percent to $1.74 a gallon.

His very first smartphone was an iPhone 6, he said, but he has since switched to Chinese brands because of its similar quality and lower price.

After Apple's first revenue warning in almost 12 years, investors also dumped chipmakers and tech stocks and flocked to perceived safe havens like U.S. Treasuries and the Japanese yen.

The Dow Jones Industrial Average sank more than 500 points in morning trading Thursday.

Those companies are increasingly reliant on Chinese sales.

After Asian markets tumbled overnight and European exchanges stumbled, US futures were trading lower on Thursday morning, dragged down by Apple's stunning announcement Wednesday.

Apple's share of China's smartphone market has dwindled over the past three years and is expected to fall further as demand for expensive iPhones continues to erode.

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