Apple Gives Weak Forecast, Shares Fall More Than 6%

Technology Reuters

Apple Inc (AAPL) forecast fourth-quarter revenue below estimates and missed some targets for iPhone sales, sending its shares down more than 6 percent in after-hours trading.

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Apple said on Tuesday it sold 47.5 million iPhones in the third quarter, up 35 percent from a year ago. But some analysts had expected around 49 million.

The company forecast revenue of $49 billion to $51 billion, missing analysts' average estimate of $51.13 billion according to Thomson Reuters I/B/E/S.

The world's largest publicly traded company by market value said it sold 47.5 million iPhones in the third quarter, up 35 percent from a year ago, but down 22 percent from 61.2 million in the second quarter.

The company's iPhone 6 and 6 Plus, which shattered iPhone sales records when they were launched, are already 10 months old.

Sales in China more than doubled to $13.23 billion from a year earlier, the company said.

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Apple Inc. - Earnings Surprise | FindTheCompany

Apple shares fell more than 6 percent in extended trading, after closing nearly 1 percent lower at $130.75 on Nasdaq.

Apple had a troubled day, with its App Store, Apple Music, iTunes Store and some other services suffering disruption for more than three hours before results were released.

The company said net income rose to $10.68 billion, or $1.85 per share, from $7.75 billion, or $1.28 per share, a year earlier.

Analysts had expected earnings of $1.81 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 32.5 percent to $49.61 billion from a year earlier, beating Wall Street's expectations of $49.43 billion.

(Reporting by Anya George Tharakan in Bengaluru and Julia Love in San Francisco; Editing by Simon Jennings and Richard Chang)

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