Apple Stock Falls Amid IPhone, Services Disappointment

Shares of Apple fell more than 1% in after-hours trade Tuesday following a mixed quarterly earnings report that showed a decline in unit sales for the iPhone. The company reported net income of $11 billion, or $2.10 a share, compared with $10.5 billion, or $2.02 a share, in the year-earlier period. Analysts surveyed by FactSet had been calling for earnings of $2.02 a share. Revenue for the period increased to $52.9 billion from $50.5 billion a year ago, virtually in line with the consensus view of $53 billion. iPhone unit sales reached 50.8 million, down slightly from 51 million last year, and missing the Street view of 52 million. Services revenue, the company's second-biggest revenue driver, also fell short of expectations, rising to $7.04 billion, compared with $6 billion last year, which was slightly below the $7.06 billion analysts had been anticipating. Shares of Apple have outperformed both the Dow Jones Industrial Average and S&P 500 over the past year. As of Tuesday's close, its shares had been up 57.5% in the past three months, compared with an increase of 5.4% for the Dow 30.