What The Pros Are Saying After Apple's 'Darkest Day'

Wedbush's Dan Ives said in a Thursday note Apple Inc. AAPL's "jaw-dropping" guidance revision represents the "darkest day" in the company's history. Here's what some experts are saying as the dust begins to settle. 

Cramer: Chinese Government Deserves Blame

One of the more overlooked aspects of Apple's performance in China is the fact that the communist government doesn't want its people to buy iPhones and other products, CNBC's Jim Cramer said Thursday. China is supporting local hardware makers like Huawei, which has close ties to the government, he said. 

Has Apple Priced Itself Out Of China?

It's unfair to draw any correlation between Apple's problems in China with the broader trade war between the U.S. and Chinese governments, MSA Capital managing partner Ben Harburg said during Thursday's "Bloomberg Technology" segment. The iPhone maker priced itself out of the Chinese market against cheaper rivals like Huawei, Vivo and Xiamomi, whose phones are "on par if not better" and cost of one-half to one-fourth the price of an iPhone, he said. 

Can The Street Trust Cook?

Apple's attempt to "reassure" investors in November is inconsistent with the "terrible crushing news" the company released Wednesday, Yale School of Management's Jeffrey Sonnenfeld told CNBC Friday.

CEO Tim Cook should have been aware in late 2018 of its problems and was likely "drinking the same Kool-Aid as the rest of us," Sonnenfeld said. 

Cook is an honest person, but was unable to foreshadow "bad news on so many levels," he said. Sonnenfeld named the following as issues with Apple:

• Market saturation.
• Channel inventory problems.
• New iPhone lineups are not selling as well as hoped.
• Cupertino no longer offers investors iPhone unit sales data.
• Lack of progress in India and other markets.

Product recalls in Germany and China stemming from the Qualcomm, Inc. QCOM dispute.

In China, it's clear the typical consumer doesn't rely on an iPhone to the same degree a Western consumer does, Sonnenfeld said. For example, Chinese consumers can use one app, WeChat, to manage many aspects of their lives, from booking dentist appointments to paying bills, he said. 

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Photo courtesy of Apple.