You may recall that in August 2018, Apple became First publicly traded UScompany hit a $ 1 trillion valuation. Stocks continue to rise until January 2, 2019 when Apple cut its revenue forecast for the first fiscal quarter of 2019 from $ 89 to $ 93 billion to $ 84 billion. Several factors are believed to have led to the shortage including currency translation; Because the dollar is stronger than the Chinese yuan, iPhone sales in China brought less dollars into Apple’s coffers, leaving the company unable to meet or exceed guidelines for the quarter.
The comment of Apple CEO Tim Cook is at the heart of the class action lawsuit against Apple
Wall Street doesn̵
7;t like surprises, and as far as concerned Apple analysts are, it’s a big one. In fact, this is the first time Apple has cut its revenue forecast since the launch of the iPhone OG in January 2007. This week, US District Judge Yvonne Gonzalez Rogers, the same judge presiding over the trial between Apple and Epic Games, ruled that a British pension fund can sue Apple in a lawsuit lawsuit, according to Reuters. on a conference call that Apple held on November 2, 2018. While CEO Tim Cook said during that press event that Apple was facing selling pressure in some emerging markets, then Apple’s chief executive said, “I won’t put China in that category.” But a few days later, Cook asked Apple suppliers to cut production because demand from China weakened; on Jan. 2, the company cut its quarterly revenue forecast to $ 9 billion. The next day, Apple shares fell 10%, erasing $ 74 billion of the stock’s market value.
Apple is the subject of a lawsuit regarding Tim Cook’s comments back in 2018
In a 23-page decision released on Wednesday, Judge Rogers said that Apple shareholders had accused Cook’s statement about Apple feeling “selling pressure” in some emerging markets ( but not China) is “false and misleading.” She added that it seemed unbelievable that Cook didn’t see the “troublesome signs” in China that the company itself had discovered. The judge added that it was “stressful” to believe that Cook was unaware of the trade tensions between the US and China and how it would affect Apple. Rogers also said that the plaintiffs have come to the conclusion that Cook knows that there are risks associated with China when he said in the analyst call. And according to the judge, the plaintiffs came to the conclusion “that Cook did not act innocently or just negligently.” Judge Rogers also dismissed claims regarding the demand for Apple’s 2018 handsets such as iPhone XS and iPhone XS Max.
The plaintiffs are led by the Norfolk County Council as the Administrator of the Norfolk Pension Fund, located in Norwich, UK. The complaint is filed in US District Court, Northern District California. Apple and its legal team will have to try and create some doubts as to whether Cook should know what’s going on with the Chinese economy and how it will affect the company. Investors managing large sums of money, such as the plaintiff, will see Cook’s comments as an indication that Apple is not having any problems with its business in the country. this family. If you’re sitting on the jury of the case, you might believe that the CEO of one of the most powerful tech companies in the world is ignorant of economic conditions in one of these countries. where does the company do business? It’s a big step to be sure what that means unless Apple feels strongly that they can win, they can ask the tech giant to settle it. Of course, we are not lawyers and we don’t play a game on television.