Apple has warned investors that its revenue over the crucial festive season will be lower than expected, blaming the US-China trade war for disappointing iPhone sales.

Axar.az reports foreign media.

Shares in the technology giant fell seven percent in after-hours trading following the surprise announcement from chief executive Tim Cook.

Mr. Cook said the company expected revenue of about $84bn (£67bn) in the three months to 29 December, down from a previous forecast of $89bn to $93bn that had already disappointed investors.

He cited China as Apple‘s biggest weak spot but also conceded that demand for the latest iPhone models was weaker than anticipated.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Mr. Cook wrote in a letter published after markets closed on Wednesday.

He attributed this partly to “some customers taking advantage of significantly reduced pricing for iPhone battery replacements”.

Apple‘s stock plunged seven percent to $146.40 (£117) in extended trading following the announcement. The shares had already fallen 32 percent from their peak in early October when investors still had high hopes for the new iPhone models.