In August, Apple became the first ever American public company to reach a $1 trillion evaluation. However, Apple announced a reduced revenue outlook recently which came as a shock to the stock market.
Apple’s CEO Tim Cook said that slow sales in China could cause the drop in value. After a lot of growth, experts say that China is facing an economic slowdown and 2018 is projected to have China’s slowest growth since 1990.
With Chinese consumers more careful about how they spend their money, Apple is not the only company to face the consequences. Western car companies and Starbucks, for example, are finding it harder to sell in China. Other analysts blame the situation on Apple’s expensive pricing strategy. The frequency with which people upgrade their iPhones is lower, as well.
Difficult words: evaluation (how valuable something is – how much money is in it), announce (to officially say to people), revenue outlook (how much money you think you are going to make), stock market (a market where people can buy stocks – parts of companies), CEO (a chief executive officer, the boss), consequences (the result, the situation which comes as a result of something).