Three months after becoming the first public company in the US to be valued at $1 trillion, Apple’s shares dipped to $206.66.
The company’s shares slid by 7% following its report on its fourth-quarter earnings and iPhone sales, which failed to meet analysts’ prediction.
Apple’s revenue of $62.9 billion beat expectations of $61.44 billion, while the total number of iPhone units sold was 46.9 million which was below analysts’ expectation of 48.4 million.
“Customer satisfaction with iPhone continues to be outstanding and is the highest in the industry. The latest survey of U.S. consumers from 451 Research indicates customer satisfaction of 98% for iPhone X, 8, and 8 Plus combined. And among business buyers who plan to purchase smartphones in the December quarter, 80% plan to purchase iPhones.” – Luca Maestri, Chief Financial Officer, Apple
While Apple continues to stay positive about its sales figures, its report showed a decline in iPad and Mac sales.
On the other hand, its services revenue from Apple Music and App Store managed to rake in $10 billion in the last quarter.
Apple drops a bombshell
Apple investors should figure out a new way to track the company’s financial health as the company announced on Thursday that it will stop reporting the total units of iPhone, iPad, and Mac computers sold.
During the company’s earnings call, Maestri said the number of units sold in any 90-day period is “not necessarily representative of the underlying strength of our business.”
Investors have always used the unit sales of Apple’s devices to estimate the growth of the company, so the inability to access this information now poses a great challenge for them.
However, the company said that it will still provide the revenues it makes from its devices.
What do you think of Apple’s decision to stop disclosing its unit sales? Share your thoughts with us in the comments below or over in our Facebook Group.