Reuters has reported that Apple missed Wall Street’s revenue forecast for the third straight quarter, mainly because iPhone sales were lower than expected. This news made investors worried about Apple’s dominance in the mobile industry, as its shares fell 10 percent closing at $ 463. That was equivalent to a market value loss of around $ 50 billion.
Apple said it shipped 47.8 million iPhones last quarter, which was up 29 percent compared to the same time period last year. However, it was below the 50 million shipments analysts had expected.
Analyst Shaw Wu of Sterne Agee still sees Apple as one of the strong players in the mobile industry, but “Android continues to grow rapidly.”
“If you step back a bit, it’s clear they shipped a lot of phones. But the problem is the high expectations that investors have,” We added.
For instance, the average Wall Street forecast for Apple’s revenue in the second fiscal quarter is more than $ 45 billion. However, the company’s revenue is projected to hit somewhere between $ 41 billion and $ 43 billion. Apple’s first fiscal quarter revenues actually rose 18 percent to $ 54.5 billion, but it was below average analyst estimate of $ 54.73 billion.
These numbers will prompt more questions on what new products Apple will churn out, and what it can do to attract new customers. Or perhaps, as I see it, analyst should give modest numbers to Apple next time.