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Apple drops iPhone bombshell on already reeling stock market

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SAN FRANCISCO — Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company’s most profitable product has lost some of its lustre.

The reckoning came in a letter from Apple CEO Tim Cook to the company’s shareholders released after the stock market closed Wednesday.

Cook said Apple’s revenue for the October-December quarter — including the crucial holiday shopping season — will fall well below the company’s earlier projections and those of analysts, whose estimates sway the stock market.

Apple now expects revenue of $84 billion for the period. Analysts polled by FactSet had expected Apple’s revenue to be about 9 per cent higher — $91.3 billion. The official results are scheduled to be released Jan. 29.

Cook traced most of the revenue drop to China, where the economy has been slowing and Apple has faced tougher competition from home-team smartphone makers such as Huawei and Xiaomi. President Donald Trump has also raised new tensions between the U.S. and China by imposing tariffs on more than $200 billion in goods, although so far the iPhone hasn’t been affected directly.

China’s “economy began to slow there for the second half,” Cook said during an interview with CNBC on Wednesday afternoon. “The trade tensions between the United States and China put additional pressure on their economy.”

Cook also acknowledged that consumers in other markets aren’t buying as many of the latest iPhones, released last fall, as Apple had anticipated — a factor that could stem from a starting price of $1,000 for Apple’s top-of-the-line iPhones.

Apple’s stock plunged 7 per cent to $146.40 in Wednesday’s extended trading. The shares had already fallen 32 per cent from their peak in early October when investors still had high hopes for the new iPhone models. Apple’s troubles may have ripple effects on other technology companies, given investors have been bailing on the industry in recent months. The tech-driven Nasdaq composite index now stands 18 per cent down from its record closing high reached in August.

Now, Apple must try to find a way to win back Wall Street’s confidence and reverse a steep decline that has erased $350 billion in shareholder wealth in just three months.

“This is Apple’s darkest day during the Cook era,” Wedbush Securities analyst Daniel Ives said. “No one expected China to just fall off a cliff like this.”

While President Donald Trump’s trade war with China isn’t helping Apple and other U.S. technology companies, Ives believes Apple miscalculated by continuing to roll out high-priced phones in China, creating an opening for rivals with less costly alternatives that still worked well.

The price gap is one reason Huawei surpassed Apple in smartphone sales from April through September last year to seize the No. 2 spot behind industry leader Samsung, according to the research firm International Data Corp.

“The question now is will Apple change its strategy or stick to its hubris,” Ives said.

To help boost iPhone sales, Cook said Apple will expand its financing plans and build upon its recent efforts to make it easier to trade in older models at its stores.

But outsiders will find it harder to see how that’s working out. In November, Apple unexpectedly announced that it would no longer disclose how many iPhones it ships each quarter, ending a long-running practice. Wall Street immediately interpreted the move as an attempt to mask a slow but steady downturn in sales.

Apple said at the time that it wanted to reduce investor focus on its iPhone division and instead highlight other promising areas of its business, including its services division that sells subscriptions for music streaming, collects app-related commissions and repairs malfunctioning devices.

But the company now expects its annual revenue to fall 5 per cent from the previous year’s level. That reversal of fortune could reinforce fears of a global economic slowdown .

Michael Liedtke, The Associated Press

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Poilievre on 2025 Election Interference – Carney sill hasn’t fired Liberal MP in Chinese election interference scandal

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From Conservative Party Communications

Yes. He must be disqualified. I find it incredible that Mark Carney would allow someone to run for his party that called for a Canadian citizen to be handed over to a foreign government on a bounty, a foreign government that would almost certainly execute that Canadian citizen.

 

“Think about that for a second. We have a Liberal MP saying that a Canadian citizen should be handed over to a foreign dictatorship to get a bounty so that that citizen could be murdered. And Mark Carney says he should stay on as a candidate. What does that say about whether Mark Carney would protect Canadians?

“Mark Carney is deeply conflicted. Just in November, he went to Beijing and secured a quarter-billion-dollar loan for his company from a state-owned Chinese bank. He’s deeply compromised, and he will never stand up for Canada against any foreign regime. It is another reason why Mr. Carney must show us all his assets, all the money he owes, all the money that his companies owe to foreign hostile regimes. And this story might not be entirely the story of the bounty, and a Liberal MP calling for a Canadian to be handed over for execution to a foreign government might not be something that the everyday Canadian can relate to because it’s so outrageous. But I ask you this, if Mark Carney would allow his Liberal MP to make a comment like this, when would he ever protect Canada or Canadians against foreign hostility?

“He has never put Canada first, and that’s why we cannot have a fourth Liberal term. After the Lost Liberal Decade, our country is a playground for foreign interference. Our economy is weaker than ever before. Our people more divided. We need a change to put Canada first with a new government that will stand up for the security and economy of our citizens and take back control of our destiny. Let’s bring it home.”

 

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Canada Needs A Real Plan To Compete Globally

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From the Frontier Centre for Public Policy

By Marco Navarro-Génie 

Ottawa’s ideological policies have left Canada vulnerable. Strategic action is needed now

As Canada navigates an increasingly complex geopolitical landscape, the next federal government must move beyond reflexive anti—Americanism regardless of its political leanings. Instead, Canada should prioritize national interests while avoiding unnecessary conflict and subservience.

The notion that Canada can stand alone is as misguided as the idea that it is only an economic appendage of the United States. Both perspectives have influenced policy in Ottawa at different times, leading to mistakes.

Rather than engaging in futile name-calling or trade disputes, Canada must take strategic steps to reinforce its autonomy. This approach requires a pragmatic view rooted in Realpolitik—recognizing global realities, mitigating risks, governing for the whole country, and seizing opportunities while abandoning failed ideologies.

However, if Washington continues to pursue protectionist measures, Canada must find effective ways to counteract the weakened position Ottawa has placed the country in over the past decade.

One key strategy is diversifying trade relationships, notably by expanding economic ties with emerging markets such as India and Southeast Asia. This will require repairing Canada’s strained relationship with India and regaining political respect in China.

Unlike past Liberal trade missions, which often prioritized ideological talking points over substance, Canada must negotiate deals that protect domestic industries rather than turning summits into platforms for moral posturing.

A more effective approach would be strengthening partnerships with countries that value Canadian resources instead of vilifying them under misguided environmental policies. Expand LNG exports to Europe and Asia and leverage Canada’s critical minerals sector to establish reciprocal supply chains with non-Western economies, reducing economic reliance on the U.S.

Decades of complacency have left Canada vulnerable to American influence over its resource sector. Foreign-funded environmental groups have weakened domestic energy production, handing U.S. industries a strategic advantage. Ottawa must counter this by ensuring Canadian energy is developed at home rather than allowing suppressed domestic production to benefit foreign competitors.

Likewise, a robust industrial policy—prioritizing mining, manufacturing, and agricultural resilience—could reduce dependence on U.S. and Chinese imports. This does not mean adopting European-style subsidies but rather eliminating excessive regulations that make Canadian businesses uncompetitive, including costly domestic carbon tariffs.

Another key vulnerability is Canada’s growing military dependence on the U.S. through NORAD and NATO. While alliances are essential, decades of underfunding and neglect have turned the Canadian Armed Forces into little more than a symbolic force. Canada must learn self-reliance and commit to serious investment in defence.

Increasing defence spending—not to meet NATO targets but to build deterrence—is essential. Ottawa must reform its outdated procurement processes and develop a domestic defence manufacturing base, reducing reliance on foreign arms deals.

Canada’s vast Arctic is also at risk. Without continued investment in northern sovereignty, Ottawa may find itself locked out of its own backyard by more assertive global powers.

For too long, Canada has relied on an economic model that prioritizes federal redistribution over wealth creation and productivity. A competitive tax regime—one that attracts investment instead of punishing success—is essential.

A capital gains tax hike might satisfy activists in Toronto, but it does little to attract investments and encourage economic growth. Likewise, Ottawa must abandon ideological green policies that threaten agri-food production, whether by overregulating farmers or ranchers. At the same time, it must address inefficiencies in supply management once and for all. Canada must be able to feed a growing world without unnecessary bureaucratic obstacles.

Ottawa must also create an environment where businesses can innovate and grow without excessive regulatory burdens. This includes eliminating interprovincial trade barriers that stifle commerce.

Similarly, Canada’s tech sector, long hindered by predatory regulations, should be freed from excessive government interference. Instead of suffocating innovation with compliance mandates, Ottawa should focus on deregulation while implementing stronger security measures for foreign tech firms operating in Canada.

Perhaps Ottawa’s greatest mistake is its knee-jerk reactions to American policies, made without a coherent long-term strategy. Performative trade disputes with Washington and symbolic grandstanding in multilateral organizations do little to advance Canada’s interests.

Instead of reacting emotionally, Canada must take proactive steps to secure its economic, resource, and defence future. That is the role of a responsible government.

History’s best strategists understood that one should never fight an opponent’s war but instead dictate the terms of engagement. Canada’s future does not depend on reacting to Washington’s policies—these are calculated strategies, not whims. Instead, Canada’s success will be determined by its ability to act in the interests of citizens in all regions of the country, and seeing the world as it is rather than how ideological narratives wish it to be.

Marco Navarro-Génie is the vice president of research at the Frontier Centre for Public Policy. With Barry Cooper, he is co-author of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).

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