Tim Cook Says Potential Weak Holiday Sales Tied to Exchange Rates and iPhone Launch Timing

Apple had yet another massive quarter, raking in billions, but the company is aware that the next quarter might not see such positive results.

In an interview with Reuters, Apple’s CEO, Tim Cook, warned that a potential weak holiday stretch is tied to a couple different factors. The first is timing, specifically as it relates to the most expensive iPhones the company has ever launched. Both the iPhone XS and XS Max launched in September, and with those devices largely being picked up by early adopters, the massive sales won’t reflect in the next quarter, even with holiday shopping season in full effect.

And then the iPhone XR launched in October, and while that will surely help things, the device doesn’t have as high a price tag, and therefore won’t have such a huge impact.

Cook says the company’s forecast, which includes a $2 billion hit, is due directly to exchange rates and emerging markets.

“Cook said that Apple is “seeing some macroeconomic weakness in some of the emerging markets.” He later told investors that weak markets included Brazil, India, Russia and Turkey.”

Apple’s guidance for the next quarter is between $89 billion and $93 billion, with the company leaning more towards $91 billion in the end.

[via Reuters]