Apple’s CEO Tim Cook announced that his company is in the midst of an economic downfall due to several factors. For starters, cheaper battery replacements are cutting into the sales of multiyear warranties – the ones presented to customers after the point of sale. Secondly, Tim Cook thinks the weakening US dollar is to blame for Apple’s lowered profits, as well as the company’s flagship device, the iPhone, experiences its worst sales run in recent memory due to competition from abroad.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Cook expressed in a written statement. “In fact, most of our revenue shortfall to our guidance, and over 100% of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac, and iPad.”

Cook’s plan to offer the battery swap at a $50 reduction in price did not have the intended effect of boosting in-house sales. Apple didn’t only reduce the battery replacement service as a sales pitch but in an effort to preserve outdated batteries for material re-use. On the positive side of things, Cook is reporting increased sales in a few avenues of note, namely in services, accessories, and in the sale of wearable tech like smart-watches and iPatches, to name but a few of the new gidgets littering the market with the Apple logo.