Apple’s week went through bad to worse.
The company’s stock fell more than 4% on Friday. Apple released strong earnings results on Thursday nevertheless failed to fully dispel lingering concerns about iPhone demand.
The decline, which came amid a broader market sell-off, pushed Apple into correction territory. of which means the stock was down more than 10% through its most recent high, which was reached last month.
Apple ( posted record sales of $88 billion for the final three months of 2017 fueled in part by the higher cost tag of the iPhone X, which went on sale during the quarter. )
However, the total number of iPhones sold during the quarter declined 1% through the same period a year earlier. Worse still: Apple expects sales for the upcoming quarter to be between $60 billion along with $62 billion, well below Wall Street estimates.
The weaker sales forecast along with slight dip in iPhones sold fuel lingering investor concerns about demand for Apple’s current iPhone lineup, including the $999 iPhone X product along with the more affordable iPhone 8 along with 8 Plus.
“through our perspective, the quarter was a mixed bag,” Sherri Scribner, an analyst with Duetsche Bank, wrote in an investor note after the earnings results were released Thursday.
Related: How will Apple create its media empire?
The questionable iPhone demand was offset to some extent by a surge from the average cost of each iPhone sold, as well as Apple’s plans to return cash to shareholders as a result of the tax bill signed into law late last year.
“The quarter had enough of both positives along with negatives to keep the bulls along with bears firmly in their own camps for right now,” Scribner wrote.
Daniel Ives, an analyst with GBH Insights, right now expects Apple to ship between 235 million to 240 million iPhones from the 2018 fiscal year, down through 255 million previously. nevertheless Ives says the higher cost tags, tax repatriation along with product launches later from the year could help make up for of which.
“of which can be a hand holding period starting with tonight’s call,” Ives wrote in an investor note Thursday night. “We believe near term turbulence does not change our long term bullish thesis on Apple.”
The stock slipped from the days before the earnings Discharge as multiple news outlets reported Apple was cutting production for the iPhone X by half for the first three months of 2018.
Apple investors had previously thought the vastly redesigned iPhone X would certainly help drive a “super cycle” of customers upgrading their smartphones.
Apple had gone several years without doing a major change to the iPhone’s look along with feel before releasing the tenth anniversary edition iPhone X. The phone features a full bleed screen along with offers the option to unlock the device by scanning your face.
nevertheless the iPhone X was a risky bet for Apple. the item was Apple’s most expensive iPhone to date along with didn’t go on sale until more than a month after the more affordable 8 along with 8 Plus devices.
“Apple stumbled from the item’s most recent effort to expand the iPhone product line with 2 fresh designs in 2017,” Gene Munster, an Apple analyst along with managing partner at Loup Ventures, wrote in a note Thursday.
Munster attributed the weaker iPhone sales from the holiday quarter in part to “the more complex buying decision between iPhone 8 along with iPhone X.”
sy88pgw (fresh York) First published February 2, 2018: 4:45 PM ET