Forex News

AAPL say the rising USD will smash into revenue (Dec Q revenue to drop under Sep Q)

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Apple conference call on the super-strong USD :

  • “nearly 10 percentage points of negative year over year impact from foreign exchange”
  • “we believe total company year-over-year revenue performance will decelerate during the December quarter as compared to the September quarter”

When Apple sells a product offshore from the US (say, in China, for example) the customer pays in his or her local currency (yuan, for example), and this buys fewer USD when AAPL brings it home, hence revenue is lower in USD terms than otherwise (hedges notwithstanding etc.)