Apple Falls off $1tn Mark as Shares Slide

Apple briefly lost its $1tn valuation on Thursday when its shares fell 7% in after-hours trading despite posting record results.

While the tech giant’s strategy of charging more for its phones has paid off, with revenues jumping in the last three months despite relatively flat sales, warning of possible weaker sales in coming months sparked a share price slide after official trading ended.

And the sell-off accelerated after Apple said it would stop disclosing the number of units sold.

Apple executives defended their decision, arguing that the figures are no longer good indicators of the firm’s financial health.

This comes as the total number of smartphones sold by all makers globally declined for the first time in 2017.

Apple sold 46.9 million iPhones in the quarter to end-September, a modest rise on the 46.7 million sold for the same period last year.

The California-based company is also making more money from “services” such as the App store, Apple Music and Apple Pay.

For the firm’s full 2018 financial year, profits increased 23% to $59.5bn, as revenue rose 16% to $265.5bn.

,

Leave a Reply

Your email address will not be published. Required fields are marked *