Apple shares slumped almost 7 per cent in after-hours trading as its fourth-quarter revenue forecast fell short of estimates and it missed some targets for iPhone sales. The less than expected sales of iPhone did little to alleviate that concern. Apple’s internal decision to design and manufacture a 4.7 and 5.5-inch Smartphone with the iPhone 6 and 6 Plus has undeniably appealed to many Android users who previously opted for Google’s OS largely due to the availability of multiple devices with larger screens. With Apple’s most recent iPhone lineup, that advantage was thoroughly and emphatically eliminated in one fell swoop. In some other markets, it is pushing current customers to continue with the iPhone when they upgrade. This is a 35 percent gain from the year-ago period.
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Tim Cook stated in a Wall Street Journal’s interview that the gap between Apple and its competitors is widening. The world’s most valuable company (currently worth over $760bn) also shipped an impressive 47.5m iPhones in the quarter to the end of June beating expectations. He observed that the organization had the highest rate of switchers from Android phones ever in this quarter.
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Apple posted another round of record results late last night, with its revenues jumping to just shy of $50bn.
