Apple shares fell more than 6 percent today after Apple announced that it would no longer know exactly how many iPhones will be sold in the financial results.
The decision "Chinstroke" caused frustration and anxiety among investors. An analyst saw this as proof that the tech giant has "something to hide."
The stock's fall plunged Apple short of its $ 1 trillion mark, a historic milestone it reached in August, before closing at $ 207.48 a share, down 6.63 % per day.
The losses weighed more than $ 11 million on CEO Tim Cook's wallet from the 878,425 Apple shares he owns, according to the company's most recent SEC filing.
The Apple share fell on Friday by up to 7 percent. The company's decision to end the number of iPhones sold per quarter did not let the investors know
APPLE IN NUMBERS
Revenue: $ 62.9 billion, up 19.5 percent year-over-year, compared to analyst expectations of $ 61.44 billion
Benefit: $ 2.91 per share, an increase of 32 percent over the previous year, compared to consensus estimates of $ 2.79
sold iPhones: 46.8 million over Wall Street's expectations for 47.5 million
Average iPhone sales prices: $ 793, more than analysts estimated $ 750
Revenues from iCloud, App Store and Apple Music: $ 10 billion
sold iPads: 9.6 million, a decrease of 6% over the previous year
A number of Wall Street analysts lowered their price targets for Apple shares Friday morning. Bank of America downgraded the shares because it expects, among other things, "increased risk" due to weak iPhone sales in the coming months.
Apple shares also pushed down the tech-heavy Nasdaq Composite, which fell more than 1.3 percent late in the morning, cutting Facebook, Amazon and Google shares.
The California-based technology group earns most of its money with iPhones, and the sales figures are considered lucky charms of the company.
Analysts look at iPhone, iPad and Mac sales figures, which were used as an indicator of consumer demand in each quarter, and many see the decision not to flag these numbers as a red flag.
"Apple will discontinue the release of next-quarter sales and fear the company has something to hide," wrote Timothy O & # 39; Shea, an analyst at Jefferies, in a report to investors.
Following the announcement of earnings for a record-breaking September quarter, Apple shares fell 6.5 percent on Thursday to $ 207.78 (£ 159.91).
After markets opened at 9:30, they rose slightly and reached a high of $ 213.40 (£ 164.15) before giving way again.
On Friday morning, the shares fell on Friday morning by up to 7 percent. As a result, Apple briefly lost its $ 1 trillion market capitalization, a rating that was achieved in August, earning it the title of "Most Valuable Company in the World."
Apple's market capitalization represents the total number of shares multiplied by the current share price.
The higher the stock of Apple, the higher its rating and vice versa.
Apple scored a blockbuster profit, but saw the punishment of the shares after a disappointing forecast for the Christmas season. It is no longer reported how many iPhones it sells
Apple shares pushed down the tech-heavy Nasdaq Composite, which fell more than 1.3 percent in afternoon trading, cutting Facebook, Amazon and Google shares
Apple executives confirmed that from now on in the earnings reports, the number of sold iPhones or other products is no longer specified.
Instead, it would focus on sales, margins, and cost of sales.
Apple's Chief Financial Officer Luca Maestri told reporters at a conference call that the change was due to an increasingly diverse product line.
"This is a bit like when you go to the market and you push your cart up to the cash register and [they say] "How many units do you have in there?" Cook said.
"It does not matter how many units exist in relation to the total value of what's in the cart."
The shake-up was immediately criticized by many on Wall Street.
Wedbush analyst Daniel Ives described the move as "a jail-drop" that would probably frustrate investors looking for more clarity about Apple's overall business by selling items.
Apple sold just over 217 million iPhones in fiscal year 2018. This is only a slight improvement over the 216 million it sold last fiscal year. However, sales have increased steadily over the years
"The Street will find it hard to swallow this pill this morning, as the transparency of Cupertino's story will be a major drawback, as tracking iPhone units has become the rule of every investor over the past decade's Apple history has followed closely and for which it is crucial the thesis, explained Ives.
"… The skeptics will point out that Apple has done so at the critical point where higher ASPs compensate for slower sales. This remains the concern and the stock will hit accordingly this morning.
Fourth quarter revenue increased nearly 20 percent to $ 62.9 billion compared to the same period last year, while profit increased 32 percent to $ 14.13 billion. The growing service business, which includes iCloud, App Store and Apple Music, like other Apple gadgets such as iPads and Macs, also contributed to this growth.
"We are pleased to announce another record-breaking quarter of fiscal year 2018. This year saw the delivery of our two billionth iOS device, the 10th anniversary of the App Store, and the highest sales and earnings in the history of Apple scores. & # 39; CEO Tim Cook said.
The fall in the stock's share caused Apple to temporarily break the $ 1 trillion valuation, a historic milestone it had reached in August. Technology giants were in a race for market capitalization
However, the market was disappointed that Apple missed expectations with sales of 46.9 million iPhones and a less robust forecast for the main holiday season.
The average selling price of the latest iPhone was $ 793 ($ 793), suggesting that despite the rising price, Apple was able to deliver more of its most expensive handsets.
Apple did not offer a detailed breakdown of iPhone sales, but Cook said "the answer was powerful" on the new 10S models sold for $ 1,000 ($ 1,000) and more.
Revenues for the quarter ended September 29th double-digit in all of Apple's global operations.
"We have a record sales iPhone and wearables record in September, and quarterly service and Mac quarterly records," said Maestri.
Apple predicted that it would bring between $ 89 and $ 93 billion in the current quarter.
Some analysts felt that the estimate may have been conservative, with Apple being cautious about expectations as it should balance supply and demand for a range of newly launched products.
The latest report offers some positive news for Apple regarding the growth of its services, such as streaming music and Apple Pay, allowing it to diversify its revenue streams in a saturated smartphone market.
However, the iPhone has been the main driver of revenue and profits for Apple, as well as helping drive more consumers into the company's apps and services ecosystem.
Apple holds around 12 percent of the global smartphone market. The rest is sold by manufacturers of Android phones.
Creative Strategies analyst Ben Bajarin said it was possible that Apple did not anticipate consumer demand and did not have the right mix of devices in the last quarter.
The iPhone has been the main driver of Apple's revenue and revenue in recent years, but the company is seeking diversification by receiving more of the services
Another possibility, Bajarin said on Twitter, is that "Apple deliberately sets lower expectations for the holidays."
The strong US dollar was a "headwind" on sales, according to Cook, especially in markets such as Turkey, India, Brazil and Russia.
"In some cases, we've been pricing in, and these markets are not growing as we would like," said Cook.
He claimed that Apple talked to Indian officials about opening stores in the country and about duties for the company's products.
"I firmly believe in India," said Cook. "I'm very optimistic about the country and its people and our ability to perform well there."
Apple's business in China was strong, although officials there almost had the moratorium on approving new games for the local App Store, Cook said.
The trillion dollar rise of Apple
The company's journey to the pinnacle of the technology industry was a rocky one after Jobs (mid-1976) left the company in the mid-1980s after his Pet project, the first Macintosh computer, had problems and he tried to oust him Chief Executive John Sculley. Wozniak is shown on the left
1976Founders Steve Jobs, Steve Wozniak, and Ronald Wayne founded the company on April 1, 1976, when they sought to sell computer kits to hobbyists, each built by Wozniak.
The first product was the Apple I.
1977: Apple released the Apple II in June, the first mass-market PC.
1981Jobs became chairman.
1984: The Macintosh was introduced to the Super Bowl during a commercial break and later officially unveiled during a launch event. It was discontinued a year later and Jobs left the company.
1987: Apple has released the Macintosh II, the first color of the Mac.
1997: Apple Announces Acquisition of NeXT Software as a $ 400 Million Deal Returning to Jobs as Interim CEO. He officially accepted the role in 2000.
2001: Apple has introduced iTunes, OS X and the first generation iPod.
The first iPod MP3 player was released on October 23, 2001 at an event in Cupertino and could contain up to 1,000 songs.
Steve Jobs introduces Apple Computer Corporation's new Macintosh on February 6, 1984 in California.
The then Chief Executive Officer of Apple, Steve Jobs, with the iPhone
2007: Apple introduces the iPhone.
2010: The first iPad was introduced.
2011: Jobs quit 2011 due to illness and handed over the CEO title to Tim Cook. Job died of pancreatic cancer in October.
2014: Apple has introduced the Apple Watch. It also introduced its first major iPhones – the 6 and 6 Plus.
2015: After buying Beats from Dr. Dre has introduced Apple Apple Music to compete with Spotify and other music streaming services.
Apple CEO Steve Jobs speaks at an Apple event at Apple's headquarters in Cupertino, California.
2016: Apple returned to its roots and announced the 4-inch iPhone SE. Meanwhile, the firm is involved in a lawsuit with the FBI. The agency is seeking access to the locked phone used by Syed Farook, who died in a gunfight following a fatal attack in San Bernardino, California, in December with his wife. The court order was dropped on March 28 after the FBI announced that a third party could unlock the device.
2017: Apple introduces the iPhone X, which eliminates the Home button to make room for a futuristic screen design, and a new FaceID system that unlocks phones only with the owner's face using advanced sensors and lasers.
2018: For the company Apple introduces for the first time a new operating system iOS 12, with whose help users need less time for the administration of their devices. The move was triggered by a strongly worded shareholder letter urging the firm to tackle the growing problem of smartphone addiction among children and adolescents.