The weaker-than-expected US manufacturing release added to the growing fears that the US economy is slowing down. As a result, the Dow Jones Industrial Average fell 660.02 points or 2.8 percent, Apple shares triggered the broad-based sell-off. The S&P 500 fell 2.47 percent. The US tech sector fell 5.07 percent.
Apple saw its first quarter revenue of $84 billion versus a previous guidance of a range of $89 billion to $93 billion as Apple claims its revenue fall in China was the driver of weaker performance. What is people just hate Apple? More importantly, there is a growing fear that the global economy is slowing and this news just piles on to the existing fears. There are now questions about the Greater China countries, the possibility of profit warnings and slower growth in emerging markets.
But this news about Apple, this might just be another round of people expressing frustration with Silicon Valley. Think about the focus of Chinese workers to be the best, to introduce the next technology while US workers at Google, Apple and Facebook demonstrate their skills in speech and thought control, protesting everything at their firms that seems to trigger them. The Chinese have no time for that, they just work and produce results.
Is the selling of Apple stock just another wave of Chinese consumer rebellion against in iconic US company? or is it real economic weakness in China? We at Classiarius believe that the next shoe to drop is the clear evidence of winners and losers in San Francisco which means workers will be focusing on their companies.