Apple shares tumbled as much as 10% on Thursday after the iPhone-maker blamed weak China demand for its revenue shortfall in the holiday quarter, a clear sign of the company’s struggles in the world’s largest smartphone market.
On Wednesday, Apple lowered its revenue forecast to $84 billion for the quarter ended Dec. 29. It had originally forecast revenue of between $89 billion and $93 billion. The rare revenue warning — the firm’s first in nearly 12 years — sent shockwaves through global markets.
Shares of U.S.-based suppliers and chipmakers, including Cirrus Logic Inc. and Analog Devices, were down in morning trading.
The selloff in Apple dragged its market capitalisation below that of Alphabet Inc. and set the stock for its biggest intraday percentage fall in almost six years.
