Shares fall after quarterly figures
$50 billion revenue in three months, but Apple disappoints
Revenue came in at $49.6 billion, up 33% year over year and just ahead of guidance. Apple’s iPhone revenue of $31.4bn increased 59% over the previous year and was 63% of total company revenue.
However, even with CEO Tim Cook saying the Watch beat the firm’s internal expectations it fell far short of what Wall Street was expecting.
Sales growth is seen shrinking to 6% next year as the Chinese smartphone market matures.
Its shares fell more than 7% after its revenue forecast for the current quarter was just 2% below Wall Street expectations.
Apple is thought to have sold about 2 million watches in the quarter, which would be low compared to what analysts were expecting.
Despite this caution, Apple remains a colossus. For the full fiscal year, Wall Street expects it to add $50 billion to its top line and finish the year with $233 billion in sales.