epa07261016 A Chinese consumers look at Apple products on display in an Apple Store in Beijing, China, 04 January 2019. Apple shares to plunge by 9.96 percent on 03 January 2019 after Apple CEO Tim Cook's commented about weakness in emerging markets and Greater China.  EPA/WU HONG
A customer looks at Apple products on display in a shop in Beijing. EPA

Apple's bombshell poses a trillion-dollar question



Revising its revenue outlook downwards for the first time in nearly two decades has raised questions over Apple’s position as an indisputable innovation leader in the global technology sector.

The company sliced its revenue outlook for its first fiscal quarter to $84 billion - more than $7bn short of earlier estimates.

Here, The National dives into the nitty gritty of the US consumer tech giant, while considering its future in 2019.

Will nosediving of shares continue?

Apple shares tumbled almost 10 per cent following its announcement on Wednesday, with the company dropping nearly 38 per cent since its valuation hit $1 trillion mark.

“Apple stock is now at a crossroads,” said a research note written by Gene Munster and Will Thompson of Loup Ventures – a US venture capital company.

“Some investors will consider the stock broken... but we have followed the company long enough to know there is cyclicality in the market's relationship with Apple.”

Apple became the first $1 trillion publicly listed US company in August 2018, transforming from a niche player in personal computers into a global powerhouse covering communications and services.

Is it a pricing blunder?

Releasing iPhones costing between $1,000 to $1,500 in a smartphone industry that is already facing harsher competition and is largely saturated could have gone against Apple.

"The $1,000 price point is fine on the higher-end. But when it starts pushing closer to $1,500 [XS Max at 512GB], that's where things don't make sense," Abbas Ali, managing editor of TechRadar Middle East, told The National.

“Apple certainly can't expect to grow at the rate it’s been growing at prices that high.”

Is Apple moving to services?

At a time when Apple is finding it difficult to sell iPhones, the company will be focusing more on services in multiple categories - including the App Store, Apple Music, cloud services, Apple Pay and its search advertising business - in 2019.

In fact, only 48 hours after trimming its revenue outlook for the holiday quarter, Apple announced that it had enjoyed buoyant business in its services segment during the holiday season.

“The holiday week was our biggest week ever with more than $1.22 billion spent on apps and games, and New Year’s day set a new single-day record at more than $322 million,” said Phil Schiller, the company’s senior vice president of worldwide marketing, on Friday.

Is it a ‘Nokia moment’ for Apple?

Diminishing sales of iPhones are being compared with Finnish company Nokia that led the mobile phone industry in the early 2000s. However, regional tech analysts say it is too early to reach this conclusion.

"We are quietly confident that Apple's not going anywhere... go to New York or London, it's all Apple iOS," Sam Blatteis, chief executive of The Mena Catalysts, which advises technology companies on policy and government affairs in the region, told The National.

“Apple has full vertical integration, global reach, and a premium price – requirements of any luxury brand in the global marketplace.”

__________

Read more:

A perfect storm for Apple’s downward outlook, experts say

Apple becomes the world's first trillion dollar company

Asian markets diverge as Apple’s sales outlook sent shockwave

The specs: 2024 Mercedes E200

Engine: 2.0-litre four-cyl turbo + mild hybrid
Power: 204hp at 5,800rpm +23hp hybrid boost
Torque: 320Nm at 1,800rpm +205Nm hybrid boost
Transmission: 9-speed auto
Fuel consumption: 7.3L/100km
On sale: November/December
Price: From Dh205,000 (estimate)

EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE

Edinburgh: November 4 (unchanged)

Bahrain: November 15 (from September 15); second daily service from January 1

Kuwait: November 15 (from September 16)

Mumbai: January 1 (from October 27)

Ahmedabad: January 1 (from October 27)

Colombo: January 2 (from January 1)

Muscat: March 1 (from December 1)

Lyon: March 1 (from December 1)

Bologna: March 1 (from December 1)

Source: Emirates

UAE athletes heading to Paris 2024

Equestrian
Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).


Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).


Cycling
Safia Al Sayegh (women's road race).

Swimming
Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).

Athletics
Maryam Mohammed Al Farsi (women's 100 metres).

The Specs

Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now

Company profile

Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices

Confirmed bouts (more to be added)

Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez

Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

Four-day collections of TOH

Day             Indian Rs (Dh)        

Thursday    500.75 million (25.23m)

Friday         280.25m (14.12m)

Saturday     220.75m (11.21m)

Sunday       170.25m (8.58m)

Total            1.19bn (59.15m)

(Figures in millions, approximate)

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

UAE currency: the story behind the money in your pockets
Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

Multitasking pays off for money goals

Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.

That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.

"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.

Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."

People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.

"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."

All We Imagine as Light

Director: Payal Kapadia

Starring: Kani Kusruti, Divya Prabha, Chhaya Kadam

Rating: 4/5

A QUIET PLACE

Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou

Director: Michael Sarnoski

Rating: 4/5

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