Apple will release earnings results after the bell Tuesday afternoon amidst growing concerns over trade with China.
The report comes less than a month after the company issued a rare warning, saying it would miss its revenue target for the final quarter of 2018 because of weak iPhone sales. It blamed an economic slowdown in China.
The announcement shook investors, reigniting fears that even corporate giants may be weighed down by broader challenges in the global economy.
Analysts expect Apple to report earnings per share of $4.17 on revenue of $84 billion, in line with the company’s updated sales forecast, but well below the $88.3 billion it posted in the same quarter a year ago.
Investors will also be scrutinizing Apple’s forecast for the upcoming March quarter for signs of pain ahead.
Apple is not the only Western company feeling the pain in China.
Nvidia stock plunged 14% on Monday the tech firm slashed its fourth-quarter sales guidance on deteriorating growth, especially in China.
American and Chinese negotiators will sit down for two days of trade talks starting Wednesday in Washington.
According to Bloomberg, Treasury Secretary Steven Mnuchin said at a briefing Monday that President Donald Trump is set to meet Chinese Vice Premier Liu He. While Trump’s presence may indicate that the U.S. is serious about striking a deal, charges against Huawei could cast a cloud over negotiations going forward.
Charges against Huawei “illustrate the risks attached to the U.S.-China relationship,” DBS Group Research strategists Philip Wee and Eugene Leow said in a commentary. “The actions by the DOJ show that it would not be enough for China to buy more U.S. goods. America wants China to make structural reforms especially on its intellectual property practices.”