Connect with us

Hi, what are you looking for?


Record decline for Apple shares after forecasting slow growth

Apple shares

Apple shares have fallen fell 2.9% in late trading, after the company warned that sales growth could slow amid weak supplies, dampening investor enthusiasm after record third-quarter business results.

Apple said in a virtual conference that supply bottlenecks will affect iPhone and iPad products in the current quarter, and slowing demand for services will lead this decline.

The company refused to provide specific forecasts about revenue, a practice it adopted during the outbreak of the Coronavirus pandemic.

Apple shares

The cautious comments followed a 36% increase in sales in the third quarter, to $81.4 billion in revenue, beating Wall Street estimates of $73.8 billion. However, investors will wait and see then decide.

Apple’s business will be affected this year due to the lack of parts and restrictions imposed by the Coronavirus.

On the other hand, the company’s business is booming, as sales of the iPhone, Apple’s main product, grew by about 50% to reach $39.6 billion in the last quarter.

The third quarter is usually Apple’s slowest, as consumers wait for new releases around September.

But, iPhone 12, which supports G5 networks, seems to have helped the company change that trend.

Apple still expects strong growth of more than 10% in the fourth quarter.

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” added Luca Maestri, Apple’s chief financial officer.

“We generated $21bn of operating cash flow, returned nearly $29bn to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”

Third-quarter revenues

Apple had warned that third-quarter revenue would be hit by 3 – 4 billion dollars due to chip shortages affecting some components of the iPad and Mac.

Third-quarter earnings were $1.30 per share, compared with expectations of $1.01 per share.

This sector relies heavily on sales of in-app purchases and downloads of third-party apps.

Apple recently reduced the discount it offers for most apps to 15% instead of 30%.

The company has launched a large number of new services in recent years, including Apple TV Plus and Apple Arcade, but it did not address the performance of these services.

The wearables, home appliances and accessories segment grew 36% to $8.78 billion.

This category includes Apple Watch, AirPods, Apple TV, HomePod and many other accessories.


Washington D.C. (Business News Report)|| Apple has launched a new operating system for its smartwatch, during an international conference held by the giant technology...


Washington D.C. (Business News Report)|| Apple has added new health features to the Apple Watch to track the percentage of fat and muscle in...


Washington D.C, (Business News Report)|| The American electronics company, Apple, expected that it will inflict losses in the second quarter of this year, due...


London, (Business News Report)|| Shares of tech giants have lost 13% of their value in a week, as global markets recovered from the Coronavirus...