Tim Cook, CEO Apple Inc. (AAPL) said, here are extreme economic conditions unlike ever before. He said that this is a huge achievement for Apple Inc., especially given the turbulent world around the company, Cook said soon after running through quarterly financial highlights of the company on a conference call.
Ever since the surprise reduction of the Chinese yuan in August, the prospective for a hard landing in the second-largest economy of the world has been front-of-mind for investors.
Cook did nothing to moderate those concerns. While pointing out that the company had been acting quite well last summer in China dissimilar some other firms, Cook proposed that the forward outlook was not nearly as optimistic.
He said, nevertheless record results, the company began to see some cyphers of economic smoothness in Greater China earlier this month, most particularly in Hong Kong.
In the meantime, other main markets for Apple, including Russia, Brazil, Japan, Southeast Asia, Canada, the Eurozone and Turkey have been churned by sluggish economic growth, the slump in commodities prices, and fading currencies. Cook added that the results of Apple are predominantly remarkable given the challenging global macroeconomic environment, and the company is sighting extreme conditions unlike anything have been experienced before.
For the tech giant, which produces almost two-thirds of its revenues outside from the United States, this is not a minor thing. The lofty U.S. greenback crimped revenues received abroad, with Cook precisely quoting the opposing effect of faintness in the British pound, Canadian dollar, euro, Aussie dollar, Mexican peso, Brazilian real, Turkish lira, and Russian ruble.
Cook added that, these foreign exchange instabilities shaved 15% off revenues the tech powerhouse received abroad relative to the company’s fiscal fourth quarter.
