Apple provided investors with bad news providing lower guidance to its end of year sales. The main reasons cited were the weakening economy in China; trade tensions between China and the United States in the second half of 2018 has put extreme pressure on the Chinese economy. A secondary excuse Tim Cook made for the lower guidance was that iPhone, Mac, and iPad sales are falling.
The company lowered revenue guidance from the previously projected $89-93 billion down to $84 billion. The news caused Apple stock to tank about 7.5% making a bunch of short sellers extremely rich.
While the company tried to downplay its sales and mostly blamed the Chinese economy, everyone knows the real reason they’re not doing well is because they didn’t make a successor to the iPhone SE. Legend has it that the company is still looking up the definition to “innovation” to this day.