Apple Stock Drops After Company Announces No Growth in iPhone Sales

Apple Stock Drops After Company Announces No Growth in iPhone Sales

Apple Stock Drops After Company Announces No Growth in iPhone Sales

Elazar Advisors analyst Chaim Siegel said that China trade issues could be making it hard for Apple to get the supplies it needs.

Apple on Thursday reported underwhelming iPhone sales and gave soft guidance for the holiday quarter. It's a move that shocked analysts and only added to jitters around a mixed earnings report.

"The "jaw dropper" last night was when Apple announced it will stop providing units/ASPs for iPhones, Macs and its other product lines", Wedbush analyst Daniel Ives wrote.

The flat sales of iPhones and yet the increased revenue shows that Apple is earning by increasing the price of the devices. However, this number was slightly below what Wall Street analysts were predicting. iPad sales were 9.7 million in the quarter, down 17% from previous year. Back in 2013, Apple stopped breaking out Mac revenue into both laptops and desktops. The company also saidit expects sales in the all-important holiday quarter to be between $89 billion and $93 billion, skewing short of analyst estimates. However, Apple believes that revenue data should be enough. That's in large part because the company is hiking prices across the board.

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The change comes as growth in the number of iPhones sold slows, with customers increasingly holding on to smartphones longer.

In addition, Maestri said "foreign exchange headwinds" could have a roughly $2 billion negative impact on Apple's sales for the upcoming quarter. Apple investors have been increasingly focused on growth in the company's services business as growth in the global market for smartphones levels off in terms of unit sales. 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.

Apple had its worst day in more than four years after posting its fifth straight week of losses.

That leaves its existing slate of hardware products. There's no doubt that the omission of unit sale data will be problematic for many investors. Will people pay $2,000 for an iPhone? As we talked about a few days ago, the Services segment of Apple's business has seen a tremendous growth over the last year and has reached $10 billion in revenue, more than a 25% increase year-on-year.

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The firm said net profit climbed 32 per cent to USD14.13 billion on revenue that was up 20 per cent to USD62.9 billion with help from growing sales of digital content and services to users and other Apple gadgetry.

But from now on, Apple will keep those numbers to itself.

"This is not a good look for Apple", said Walter Piecyk, a telecoms analyst at BTIG Research.

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