|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||1,247.01 - 1,264.00|
|52 Week Range||1,247.01 - 1,264.00|
|Beta (5Y Monthly)||0.90|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- Apple Inc. on Thursday reported its lowest revenue in China since 2014, causing concern the company is losing momentum to homegrown rivals in one of its most critical markets.Sales in Greater China fell 29% in the quarter ending Sept. 26, with the company attributing the slump to the delayed launch of the iPhone 12. The stock fell 4% in extended trading.Apple typically puts new iPhone models on sale in the third quarter, but this year the devices were not available until late October. Two of the handsets, the iPhone 12 mini and iPhone 12 Pro Max, won’t arrive in stores until the middle of November.The Covid-19 outbreak disrupted Apple’s supply chain, leading to the later launches. But even before the pandemic, the company was slower than most rivals to develop smartphones with faster 5G capabilities.In 2019, competitors including Samsung Electronics Co., Huawei Technologies Co. and Xiaomi Corp. launched a number of 5G devices, which have been followed by dozens of additional and more affordable 5G handsets this year before the iPhone 12.Earlier: Without 5G, Apple’s New IPhones Risk Falling Behind in ChinaOn Wednesday, Samsung reported smartphones sales jumped almost 50% during the September quarter. Apple’s iPhone revenue fell 21% in the period, from a year earlier.Apple had 8% of the smartphone market in China in the third quarter. Huawei was top with 45%, followed by Vivo, Oppo and Xiaomi, according to Counterpoint Research. Seven of the 10 best-selling handsets in China were 5G models, although Apple’s 4G iPhone 11 still took the top spot.Apple’s Greater China revenue peaked in 2015 on the momentum of the early generations of Apple’s larger screened iPhones.Apple Chief Executive Officer Tim Cook and Chief Financial Officer Luca Maestri tried to quell concerns on Thursday, saying they expect China sales to return to growth in the current quarter.Maestri said iPhone demand grew until mid-September and then declined. That’s around the time when Apple typically puts new iPhones on sale. “We are very, very confident that we’re going to be growing our business in the December quarter,” he added.Cook added that China is “the region that was most heavily impacted by the absence of the new iPhones during the September quarter.”That leaves a lot riding on the iPhone 12 line, Apple’s first 5G handsets. On a conference call with analysts, Cook said the company is entering 5G at the right time, with carriers improving and expanding their networks on a weekly basis. He added that 5G networks in China are “fairly advanced,” which could spur upgrades in the region.Maestri said the larger display of the iPhone 12 Pro Max may do “incredibly well” in the region.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of industry heavyweight Samsung Electronics declined around 2% after the firm on Thursday predicted a fourth-quarter decline in profits.
(Bloomberg) -- Samsung Electronics Co. warned earnings in the current quarter will decline, saying the strong growth in its mobile and memory business that helped third-quarter profit beat will ease amid intensifying competition and weakening demand.The world’s largest maker of memory chips and personal electronics said net income rose a better-than-expected 52% to 9.27 trillion won ($8.2 billion) in the three months ended September, beating the 7.54 trillion won average of estimates. Samsung foresees capital spending of about 35.2 trillion won this year because of a migration to more advanced chip processes and a buildout of its contract chipmaking business.The South Korean technology giant’s tepid outlook may fuel concern that the remarkable tech sector rally during the pandemic may have run its course. The company joined fellow chipmakers Micron Technology Inc. and Intel Corp. in warning that demand from server customers will weaken amid an inventory correction. Samsung also forecast rising competition in mobile phones and consumer electronics and said it will have to boost spending on marketing.”Concerns over disruptions in supply chain drove chip demand from cloud operators early this year due to the Covid-19 pandemic but the demand cooled down as inventories kept rising,” said Park Sung-soon, an analyst at Cape Investment & Securities. “We are seeing a correction in the memory chip market in 4Q but memory chip prices are expected to rise next year when hyperscalers start expanding their investment in servers.”Samsung Electronics shares have surged nearly 40% from their March lows. The stock slipped as much as 2.4% on Thursday after the earnings report, the most in more than a month.Click here for a live blog on the numbers.Sales of Samsung smartphones jumped nearly 50% during the September quarter as the rollout of its latest Galaxy Note series and a new foldable device reignited demand for premium handsets that had flagged during the coronavirus pandemic. Phone shipments totaled 88 million units, while tablet PCs reached 9 million during the period, according to the company, which is seeking to regain the lead as the world’s largest smartphone maker after losing the crown earlier this year to Huawei.Shelter-in-place measures continued to boost sales of consumer electronics, particularly of higher-end televisions, according to the company. But uncertainties over the pandemic will linger and costs are expected to increase heading into the year-end peak season, it added.Read more: Turns Out, People Do Buy Gadgets in a Pandemic: Tim Culpan“The mobile communications business is likely to see smartphone sales decline and marketing costs increase due to competitive market environment. In consumer electronics, profitability is expected to weaken on growing competition and rising costs, despite solid demand,” Samsung said in the earnings release. “For 2021, the company expects a recovery in overall global demand but uncertainties will remain over the possibility of recurring epidemic waves of Covid-19.”Overall demand for memory exceeded expectations in the third quarter, boosted by rush orders from Huawei Technologies Co. ahead of U.S. sanctions that kicked in last month as well as other mobile customers. While mobile may continue to remain strong in the fourth quarter and into the first half, server orders are likely to be weak with the prolonged pandemic prompting clients to slow orders, Samsung said.Server memory prices are already correcting. Contract prices for 32-gigabyte DRAM server modules fell 9% in the September quarter, according to InSpectrum Tech Inc. Prices for 128-gigabit MLC NAND flash memory chips decreased about 8% in the third quarter. Micron cut capital spending plans last month, warning about weaker demand from some corporate customers and forecast possible oversupply of flash memory chips next year.With its main mobile and chip units set to slow, Samsung is looking to newer businesses to bolster growth. The contract chipmaking division posted record quarterly revenue and the company expects to exceed the industry’s high-single-digit growth “significantly” in 2021. It also plans to expand its fledgling networks business in North America and Japan, after winning a 7.9 trillion won contract to supply 5G wireless solutions to Verizon Communications Inc. during the third quarter.The company further delayed the announcement of a new shareholder return policy, telling analysts Thursday it now plans to release details in late January.The death of Samsung Group Chairman Lee Kun-hee over the weekend may add to uncertainty. While his son Jay Y. Lee is expected to take over as chairman of the group, the younger Lee still faces two trials over allegations he used bribery and accounting trickery to smooth his path to succession. The family will also have to pay billions of dollars in inheritance tax, and Samsung has so far declined to comment on how they will fund the payments.Read more: Lee’s Risk of Jail Time Complicates Samsung Succession Plans(Updates with analyst comment in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.