Apple Shares Plunge 10% on Slowing Growth, New Product Jitters
For years, Apple consistently beat Wall Street expectations, not only because the company habitually low-balled its financial projections, but also because it was growing at a rate and scale that was virtually unprecedented in the history of corporate America. It appears those days are over. For the third consecutive quarter, Apple, the world’s largest technology company, fell short of analyst estimates, sending the company’s stock down a whopping 10% in after-hours trading, wiping out nearly $50 billion in shareholder value. Although it reported record financial results, Apple’s slowing growth has raised questions about the next phase in the company’s evolution. (MORE: Apple Profit Surges 24% Ahead of Holiday Blowout; CEO Tim Cook Disses Microsoft) One thing is for sure: The numbers associated with Apple’s business are staggering. Apple sold 47.8 million iPhones and 22.9 million iPads during the holiday quarter, but both of those figures were about one million short of analyst ...
Video: Microsoft releases Windows 8
Stocks opened lower even after better than expected news on the economy, Apple misses Wall Street expectations for the second consecutive quarter, and Microsoft releases Windows 8. Ashley Morrison reports.
Found more than 1 month ago on channel CBS
Apple Profit Surges 24% Ahead of Holiday Blowout; CEO Tim Cook Disses Microsoft
Tech titan Apple reported a 24% increase in quarterly profit Thursday, but that figure failed to meet the sky-high expectations of Wall Street analysts. Sales of the company’s iPad tablet device fell short of analyst forecasts, as many consumers held off buying in anticipation of the new iPad Mini, which was released earlier this week. But now that the product has arrived to the market, along with the iPhone 5, which was introduced on Sept. 21, the holiday quarter is shaping up to be a monster for Apple. Apple said it expects to generate revenue of $52 billion over the holidays, a staggering figure that would set a record for the largest quarterly sales haul ever by a tech company, according to CNNMoney. Still, on an earnings-per-share basis, Apple’s forecast came in below analyst expectations. Investors were largely unfazed by the profit miss, however, and Apple’s shares only dipped about 1% in after-hours trading. (MORE: Apple Planning Pandora Rival: Is Web Radio Ready for ...