Apple Stock Drops After Company Announces No Growth in iPhone Sales

Apple Stock Drops After Company Announces No Growth in iPhone Sales

Below, we've compiled a graphical visualization of Apple's Q4 2018 financial results. Apple can't hike prices forever: Will people pay $2,000 for an iPhone?

The iPhone XR is one of the few outliers from the trend of more costly Apple gadgets. However, year-over-year revenue from iPhone sales was up by 29 percent, thanks to the increase in iPhone prices.

Apple said it expects between $89 billion and $93 billion in revenue for its fiscal first quarter ending in December, with a midpoint of $91 billion coming in below Wall Street expectations of $93 billion, according to IBES data from Refinitiv.

According to analysts, iPhone sales in the quarter ended September 30 fell by half to 450,000 units in India compared with 900,000 units previous year.

Why it matters: Apple has released its fiscal fourth quarter 2018 financial results. In the most recent quarter, Apple said sales for this category hit almost $10 billion, an all-time high and larger than most standalone businesses in the world. Earnings came in ahead of analyst estimates at $2.91 per share. There's no doubt that the omission of unit sale data will be problematic for many investors.

Although there may be some logic to the rationale for the long term, "this is going to be a hard pill to swallow in the short term", Ives said.

Obama to rally for Indiana senator who backs Trump policies
Trump is speaking in West Virginia, where he is campaigning for Republican candidates ahead of Tuesday's midterm election. They promised hardline immigration policies and more tax cuts, arguing that Democrats would erase two years of progress.

Additionally, Merrill Lynch analyst Wamsi Mohan downgraded shares of Apple from Buy to Neutral, noting, "We see increased risk from a weaker macroeconomic environment". While the iPad's revenue dropped 15 percent, Macs, services, and other products have registered growth of 3 percent, 17 percent, and 31 percent.

The contribution of iPhone to the worldwide smartphone shipments has been constantly declining as well. Shares in Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and Google-owner Alphabet Inc (GOOGL.O) all rose on a generally buoyant Wall Street.

For any company like Apple, this is a severe challenge to address. It fluctuates frequently, so act fast if this offer interests you. Apple has responded by promoting software and services across its devices and raising prices on new gadgets.

The Cupertino, California company's struggle to break through with India's 1.3 billion consumers swung more sharply into focus this week after Apple blamed a disappointing set of sales forecasts on a handful of big emerging markets. Sales figures are a stable metric by which to measure the health of a company, and by concealing this information Apple is suggesting it's not doing as well as many thought.

The change apparently was triggered by Apple's frustration with investors' fixation on its iPhone sales while glossing over other key areas, such as the robust growth in its services division that collects commissions on app sales and handles subscriptions to its music-streaming service.

Dan Ives, an analyst with Wedbush Securities, called Apple's decision to no longer give iPhone sales numbers "a tough pill to swallow". In an interview, he said the change means many shareholders now believe Apple is hiding something.

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