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AAPL stock drops 8 percent on iPhone numbers and flat guidance

Despite Apple returning to growth for the first time in a year, AAPL stock opened almost 8 percent down, as iPhone sales fell below analyst predictions and Apple’s mid-point guidance on Q2 earnings forecast was for zero growth.

Analysts had predicted 55.3M iPhone sales, while Apple reported sales of 51M. Analysts were also disappointed in Apple’s guidance for Q2 of $42-44B, as the mid-point of $43B would not show any growth over the same quarter last year … 

At the time of writing, AAPL was trading at $508.08, over $40 down on yesterday.

As is often the case with AAPL stock dives, the market is responding to the gap between expectations and reality rather than the numbers themselves. The actual numbers showed record quarterly revenue growth, increased earnings per share and all-time quarterly highs for both iPhones and iPads. Clearly, Apple is doomed.

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Comments

  1. Kevin Rye (@RyeMAC3) - 11 years ago

    Apple: The only company that can make $50 billion in 3 months and people still complain.

    • adam buchanan - 11 years ago

      Apple’s head fake; the typical earnings hangover as unrealistic estimates prove,
      with the most successful company on the planet..

  2. Considering the durable goods report that just came out today maybe Apple over-performed against what looks to be considerable multi-industry weakness all around it.

  3. rogifan - 11 years ago

    It’s really quit sad. I don’t think Apple reported anything yesterday that warrants an 8% drop in the stock. It’s just the market being irrational. By the end of the week I’ll bet it gains a lot of it back as it is seen as a “buying opportunity”.

  4. granchingon - 11 years ago

    Many of these analysts overanalyze their data to come up with these overinflated estimates, maybe to create an opportunity to short Apple stock.

    • Cheryl D'Alessandro - 11 years ago

      I agree! How many times does this need to happen before someone realizes this should be illeagle! Its a shame for true Apple stock families that are having to watch this happen over and over agin. We are so FRUSTRATED and want to do something ?!?

      • Robert Blount - 11 years ago

        so I’m curious…

        why are you frustrated? if you’re a “true Apple stock family” and you put your eggs in one basket… maybe. other than that, looks like the same ol’, same ol’. you’re not used to this by now? I’m sure that stock has done you well.

  5. Graham J - 11 years ago

    Meh who cares what these stupid analysts think? Every quarter it’s the same thing, they aim too high then there’s all this “news” about how they were too high. Who gives a crap? I come here to read about Apple, not money-grubbing cronies. If I wanted realistic estimates I’d ask the people who can best provide them: Apple. Everyone else is just smushing their faces to the glass, trying to get a glimpse inside.

Author

Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


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