Apple’s Weak Forecast Sends Shockwave Across Markets
Anticipating severely lower iPhone sales in China led Apple to revise its sales forecast, setting off a chain reaction of events in markets across the world. Apple’s share price dropped 9 percent in pre-market trading yesterday.
“Apple Inc. cut its revenue outlook for the first time in almost two decades citing weaker demand in China, triggering a slump for Asian suppliers and a wave of lower price targets on Wall Street,” writes Mark Gurman of Bloomberg. “Chief Executive Officer Tim Cook said sales will be about $84 billion in the quarter ended Dec. 29, down from earlier estimates of $89 billion to $93 billion. Apple posted sales of $88.3 billion in the fiscal first quarter a year earlier, so the new forecast would mean Apple is reporting a holiday quarter slowdown for the first time since Cook became CEO in 2011.”
From my perspective, the news about Apple shouldn’t come as a total surprise. Two factors come to mind immediately: First, we’re locked in a trade war with China. Second, and perhaps more important, China has publicly announced that it plans to overtake the U.S. in the technology sector. How could any large U.S. tech company reasonably expect to be unaffected by such circumstances?
This scenario will take years to play out. We’re only in the first innings of an epoch struggle and it’s far too early to predict with any accuracy where the chips will eventually land.
Looking Forward to CES 2019
It’s never too early to start planning for the Consumer Electronics Show in Las Vegas, arguably the biggest tech show in the world. This year’s edition of the CES focuses on futuristic drones, self-driving cars, improved versions of Alexa, larger TV screens for home theaters, and folding smart phones.
“Foldable devices are going to be a big thing at this year’s CES. Multiple device makers plan on showing off a foldable of some kind, though some of those demonstrations will be behind closed doors. Mobile World Congress in Barcelona next month is still going to be the big early-year event for phone launches, but CES will provide a tantalizing tease of what’s to come,” according to The Verge.
And don’t forget about PCs. Intel and NVIDIA will be showing off their latest and greatest chips and microprocessors, which are bound to make the next generation of PCs faster, lighter and more powerful.
5G is Coming: What You Need to Know
Whenever someone finds out that I work in technology, one of the first questions they ask is how 5G will affect their phones. It’s a great question, but it only grazes the surface.
I predict that 5G will have an enormous impact on all of us. For openers, it will change how we work, communicate and travel. 5G is truly the technology of tomorrow; it will deliver a version of the future we’ve always dreamed about.
Take driverless cars, for example. With 5G networks in place, autonomous vehicles will become a reality in cities all over the world. Your car will drop you off at the office, find a place to park itself and then pick you up when you’re done working. Think of all the extra time you can spend reading, talking with friends and family, or simply taking a nap.
For a deeper dive into the coming world of 5G, I recommend Don Clark’s article in The New York Times. It’s worth reading, and it will prepare you for the inevitable questions people will ask when they find out you work in technology.