Apple's forecast for a first revenue drop in 13 years and the slowest-ever increase in iPhone shipments is having wide repercussions. As Sara Hemranjani reports, Apple is now looking to India as the critical Chinese market slows.
The golden child of Silicon Valley is losing its lustre. Although Apple had yet another quarter of record earnings -- the future isn't looking as bright. The tech titan revealed the slowest growth in iPhone sales since the device hit stores 13 yeas ago. In fact, smartphone sales could actually fall this year. CEO Tim Cook told investors he was "seeing extreme conditions" globally. With China's slowdown expected to dent income, Apple executives are now turning their attention to India. World First's Jeremy Cook says the country is an attractive prospect. SOUNDBITE: Jeremy Cook, Chief Economist, World Firstsaying (English): "It seems a natural fit for such a company to want to target Indian consumers moving forward. As it stands at the moment, we're starting to see that hopefully wage increases per capita or income within that part of the world starts to catch up with China. And therefore the demand for things like smartphones are going to increase in the near term." For now, the lower revenue forecast is putting pressure on Apple's share price. But while many are sounding the alarm bell, CNET's Ian Sherr is confident the company will weather the storm. SOUNDBITE: Ian Sherr, Executive Editor, CNET, saying (English): "It's worth noting that Apple broadly has been able to get people to pay more for their devices than competing companies and that's a real indication for Apple, at least, and a lot of its supporters that it has a lot of legs left in this business." With a market cap of more than half a trillion dollars, Apple can still hold on to the title of 'world's most valuable company'.