Apple disappointed analysts Tuesday with its earnings report, missing on estimates across the board. Revenue and sales were below Wall Street’s expectations, which sent Apple’s stock tumbling as shareholders wondered how the technology giant will stay on top of an increasingly competitive smartphone and tablet market.
The Cupertino, Calif., company reported a quarterly revenue of $35 billion — boosted by a record 17 million in iPad sales but far less than analyst estimates of $37 billion. Sales of the iPhone were also lower than expected; Apple sold 26 million iPhones against analyst expectations of about 29 million. Shares fell $30 in after-hours trading to about $570 within minutes of the report’s release.
A number of factors contributed to the company’s lighter quarter. On the company’s earnings call, Apple Chief Financial Officer Peter Oppenheimer said that the economy in Europe as well as in Brazil and Australia had an effect on the company’s quarter, in addition to the fact that Apple did not add any major countries or major carriers to its fold. The company has also been lowering the prices of its older devices, which is a good for consumers but not necessarily for the bottom line.