Why Apple's stock is down, pushing market value below $1 trillion

Ajustar Comentario Impresión

Apple said it sold 46.9 million iPhones in the fiscal fourth quarter, missing analyst expectations of 47.5 million.

It covers the first full months of sales for the new iphone range and the crucial holiday season, as it is described in the US. The mixed quarter also included softer than expected projections for Q1 2019, which is the all-important holiday quarter.

But Apple has been preparing for this moment.

Apple's supply partner Wistron, which already assembles entry-level iPhone 6S series in India, is witnessing good sales.

"This is a bit of a gut punch for everyone used to more transparency", said Wedbush Securities analyst Daniel Ives. Now Apple is making a change to ensure it doesn't have to talk as much about that problem.

For that reason, he expects Apple's stock to fall slightly out of favor, at least until the new reporting structure is fully digested. The iPhone XS, meanwhile, starts at $999, while the iPhone XS Max starts at $1,099.

And the Apple faithful are more than willing to fork over that extra cash.

Apple benefits from the shift because it's able to generate more revenue on its products by raising its prices.

While Zhang and Mohan sit on the sidelines waiting for the stock to reset itself, most analysts on Wall Street anchor a bullish perspective on the tech giant, as TipRanks analytics showcase AAPL as a Buy.

In addition, Maestri said "foreign exchange headwinds" could have a roughly $2 billion negative impact on Apple's sales for the upcoming quarter.

But a warning of possible weaker sales in coming months sparked a share price slide after official trading ended. The company has also revealed that they will no longer be reporting iPhone sales figures following poor sales performance from the device.

Investors have never been able to check on the progress of some devices, like the Apple Watch, and some fear that any forthcoming slump in the key area of iPhone sales would be hard to spot.

Meanwhile, Apple reported iPad unit sales down 6% year-over year, totaling 9.7 million for the quarter (and revenue fell 15%).

Cook said Apple's business in India in Q4 was flat. He looked relaxed and in command in his crisp white oxford and quarter zip blue pullover, flashing a victory sign to photographers as he mingled with journalists and some celebs later in Apple's demo area.

Apple released a financial outlook that disappointed many investors, and its shipments from last quarter were lower than expected.

Services continued its rise. Excluding a one-time favorable adjustment of $640 million recognized in the fourth quarter of fiscal 2017, Services revenue grew from $7.9 billion in the fourth quarter of fiscal 2017 to $10 billion in the fourth quarter of fiscal 2018, an increase of 27 percent.

Apple said the data is less relevant to the strength of its business as customers bundle products, such as an iPhone paired with its wireless AirPods headphones, along with paid subscription services like Apple Music to listen to songs and iCloud storage for photos.

If that takes off, it could push Apple's services segment far higher than anticipated.