Moscow, January 3 — “Conduct. Economy” the California tech giant said the decline in sales in China, reducing the revenue forecast for the first quarter. The company’s shares fell by 7.6%, S&P added 1.3%.

For the first time in nearly two decades, Apple Inc. lowered its forecast for quarterly revenue for the first quarter. The tech giant cites weaker-than-expected sales in China.

“We predicted some problems in key emerging markets, but did not expect this magnitude of slowing economic growth, particularly in greater China “, — the statement says Apple CEO Tim cook to shareholders.

Forecast of revenue in the first fiscal quarter ended December 29, reduced from $89-$93 billion to $84 billion gross profit decreased from $38.5% to $38%.

The average estimate of experts polled by FactSet is $91,3 billion Analysts polled by Reuters expected the indicators above assessment of Apple by about 12%.

A year earlier Apple’s revenue for the same period amounted to $88,5 billion $61.6 billion were accounted for iPhone sales.

Weak demand and lowered forecast is primarily the reduction of the forecast due to deterioration of estimates of iPhone sales. First, the decline observed in greater China (China, Hong Kong and Taiwan). Cook noted that demand for the new model in other countries was lower than expected.

According to Tim cook, the main cause of the weakening of sales of the iPhone have become macroeconomic problems in some markets. In addition, the prices of Apple products has increased due to the strengthening of the dollar. The role played and the program budget replace the batteries of the iPhone, which was in great demand.

However, concerns of leadership are not only Apple iPhone but also other segments. Marked deterioration of sales of the Apple Watch Series 4, iPad Pro, AirPods and MacBook Air because of declining demand. In greater China, reduced sales of Mac and iPad.

“Revenue for the quarter totaled more than $10.8 billion, with the increase in the rates to record levels in each of the geographical segments. We remain on track to achieve the goal of doubling the size of the business in the period from 2016 to 2020 “, — stated in the message cook.

50% growth in annual terms showed sales of wearable devices.

The market’s reaction, Investors were disappointed by the forecast from Apple: the company’s shares during the additional trading on January 2, lost 7.6 percent. Three months after the record was set and the capitalization of the tech giant has exceeded $1 trillion, the value of securities fell by 31.1%.

On this decline reacted and the S&P 500 index lost 1.3 percent. Prior to that, the index gained 7% over the five sessions compared with the recent low on 24 December: investors who returned to trading after the holidays, hoped that the correction that began in September last year ended.

“People expect the effect of the January rally when making bets for the new year. The Apple gives this a bit of a sour tone,” said a senior portfolio Manager with Synovus Trust Co. Daniel Morgan, adding that the situation raises concerns about whether the forecasts.

Analysts on average expect the company included in the S&P 500 will increase their earnings per share by nearly 7% in 2019. This is far below their expectations of growth in earnings per share to 24% in 2018. According to the latest forecasts from IBES Refinitiv, it is expected that the profit growth in the technology sector — a whopping 29% of the third quarter, will slow to 12% in the fourth quarter and will be reduced to 2% in the first quarter of 2019.

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