Apple Investors Unhappy With Latest Earnings Report, Stocks Go Down 2.9 Percent
Despite the fact that Apple managed to sell 28 percent more iPhones last quarter, the response by Apple investors to the recent earnings report has been anything but positive. Experts attribute this to rumors that are causing consumers to wait for the next iPhone to be released in the fall instead.
Timothy Cook, Apple’s chief executive, addressed these rumors by saying, “I’m glad people want the next thing. I’m not going to put any energy into trying to get people to stop speculating.”
With stock shares falling by 5 percent in after-hours trading, and by 2 percent in regular trading, analysts consider this to be a rare occasion but agree that the real issue is with the iPhone as a new version is almost always released every fall.
Apple executives, on the other hand, explained that the reason why it was only able to sell 26 million iPhones was because of the economic condition of countries such as Australia, Brazil and in the European continent.
Yet they also concur with the “chatter” about a new iPhone which is due to be released soon, and which is why analysts also consider the iPhone evolving into a business where they have two huge quarters of sales followed by low ones, thanks to consumers waiting for a new model.
And even though the iPad has begun to relieve the iPhone of the pressure to perform literally every other quarter, there’s no doubt that it remains the mainstay of the company accounting for almost 60 percent of its profits.
