Apple’s Stock drops on underperforming iPhone Sales
Apple announced earnings today and it wasn’t what analysts had expected to hear – the tech giant missed expectations and gave lower future guidance.
Apple sold 51 million iPhones during the last quarter vs. analysts expectations of 55 million units.
The company also announced that it expects to bring in $42-44 billion in revenues. Analysts had expected more than $46 billion.
The downside announcements sent the stock down 5% and BGC downgraded the stock from “buy” to “hold.”
A larger story may be the lack of innovation coming from the technology darling. The next two iPhones slated for release seem to be nothing more than the current model with a larger screen.
Samsung and other players in the smartphone market can easily upsize or downsize screen sizes to match while also adding new features at pace that Apple is struggling to match.
Leading-edge products like the iPod, iTouch, iPad and iPhone were the steps Apple took to get where it is. The question on investors minds is – got anything left?