Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day.

It is Friday, January 4th, and we're talking about all things Apple.

I'm your host, Dylan Dylan Lewis and I've got Fool

dot com tech specialist Evan new on the phone. Evan what's going on?

Tired man dealing with all this house stuff. You've had years rough start to 2019, huh? Yeah, just deal with like a handful of house

repairs, just stuff breaking, had to buy a new refrigerator and was not planning on spending an extra couple

thousand dollars on that. Well I think that's all to say that maybe 2019 the rest

of 2019 will be nice for you nice and relax no home troubles because you've gotten

everything taken care of in the first four days of 2019. Knock on wood

hopefully. Gonna wood. Maybe we're hoping that the rest of 2019 goes a little bit

better for Apple, huh? it's been kind of a

rough start to the new year for them as well.

Yeah, so they released a letter to shareholders, which is kind of a rare move that they don't really use the shareholder letter format but

Tim Cook, CEO Tim Cook put out a letter earlier this week with a lot of really bad news.

They drastically slashed their guidance for the December quarter.

Now they're expecting about 84 billion.

Now, they initially expected to have 89 to 93 billion dollars in revenue in the fourth quarter.

So we're talking about a $7 billion miss compared to the midpoint of that guidance.

While most of the other items of other forecasts are pretty much unchanged or only like a little bit different.

So gross margin for example is another important one that's within the guidance range at 38 percent.

But operating margin will be, will take a hit because of the revenue hit shortfall.

So operating margin will probably be in this 28 percent range, whereas a year ago they did 30%.

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