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.

Ranveer Singh Looks Dashing And Lively During His Haldi Ceremony; View Pics
Deepika participated in the puja dressed in a bright tangerine suit from the house of Sabyasachi . As of now, the destination of the wedding is not confirmed, but it's most likely to be Italy.

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.

Related Articles

  • China having hard time over trade war: Donald Trump

    China having hard time over trade war: Donald Trump

    The meal would give the two leaders more time to talk and create an atmosphere more conducive to negotiations, the sources said. The US this year has already imposed tariffs on $250 billion in trade with China.
    Matches to Make After UFC 230

    Matches to Make After UFC 230

    The tap came at 2:14 into the second round as Cormier jumped up to celebrate the first defense of his heavyweight title. Lewis immediately jumps back up to his feet but remains pressed against the cage by the champion.
    Son stars as Spurs sees off West Ham in Carabo Cup tie

    Son stars as Spurs sees off West Ham in Carabo Cup tie

    It's not all about winning trophies for me yet at my age. "We all want to achieve something great". I love being here, I love being a part of what this club is doing and where we're heading.
  • Cambridge Google Employees Walkout, Demand Better Policies For Women

    Cambridge Google Employees Walkout, Demand Better Policies For Women

    GOOGLE EMPLOYEES around the world have taken part in a mass walkout in a protest against what they believe are "sexist" policies. Googlers all over the world walked out en masse on Thursday in protest of the company's record on sexual misconduct.
    The Government Has Caved To Pressure And Will Get Children Off Nauru

    The Government Has Caved To Pressure And Will Get Children Off Nauru

    The children were provided medical treatment and none of the families were told they could stay in Australia, she said. The Morrison government has indicated it plans to get all children off Nauru by Christmas this year.
    Why Luke Walton isn’t on the hot seat

    Why Luke Walton isn’t on the hot seat

    He, surprisingly was supplemented by Ivica Zubac playing a major role with nine points and eight rebounds in 20 minutes. Coaching LeBron James isn't always easy and coaching James with the Los Angeles Lakers might be even tougher.
  • Pete Davidson Addresses Ariana Grande At The End Of ‘SNL’ Skit

    Pete Davidson Addresses Ariana Grande At The End Of ‘SNL’ Skit

    She mentions her exes from Ricky Alvarez, Big Sean to Pete Davidson and the late Mac Miller in the song. Grande didn't think the joke was very amusing , slamming Davidson in several since-deleted tweets.
    Can Iran survive sanctions?

    Can Iran survive sanctions?

    India and South Korea were also on the list, said a source familiar with the matter who spoke on condition of anonymity. However, Washington has granted waivers to eight countries to keep buying Iranian oil after sanctions come into effect.
    Saudi-led coalition intercepts missile towards border city

    Saudi-led coalition intercepts missile towards border city

    On Friday, the coalition said it had attacked ballistic missile and drone sites at the global airport of the Yemeni capital. On Tuesday it was reported that the real death toll in Yemen was likely five times higher than the official count given.
  • Breeders' Cup Mile: Expert Eye wins under Frankie Dettori

    Breeders' Cup Mile: Expert Eye wins under Frankie Dettori

    He is owned by WinStar Farm, China Horse Club and SF Racing, all ownership partners in this year's Triple Crown victor Justify. A Baffert exacta with West Coast and McKinzie finishing first and second is a real possibility in this year's Classic.
    Daniel Cormier Talks Brock Lesnar, His WWE Tryout, And More

    Daniel Cormier Talks Brock Lesnar, His WWE Tryout, And More

    Their chicken challenge goes back to July when the fighters shared the dais after they both fought on the same pay-per-view card. However, he hasn't forgotten about Brock Lesnar . "I'm guessing that the crowd's gonna go even harder this time", Weidman said.
    Hackers stole the private messages of over 81,000 Facebook accounts

    Hackers stole the private messages of over 81,000 Facebook accounts

    Facebook became aware of the website hawking information from user accounts and started investigating about a month ago. Third-party browser extensions that were installed by the users themselves and later exploited by hackers.