Date
29 March 2017
Apple reported a 35 percent rise in iPhone shipments for the three months ended June, but analysts weren't satisfied. Photo: Bloomberg
Apple reported a 35 percent rise in iPhone shipments for the three months ended June, but analysts weren't satisfied. Photo: Bloomberg

Apple shares dive as iPhone sales miss forecasts

Apple Inc. shares fell as much as 8.8 percent in US after-hours trading Tuesday as the company’s iPhone shipments in the three months to June and revenue forecast for the current quarter fell short of market expectations.

The tech giant announced that it sold 47.5 million iPhones during its fiscal third quarter, up 35 percent over the same period last year. But the figure missed analysts’ estimates of 48.8 million.

Meanwhile, it forecast revenue of US$49-51 billion for the three months to September, also short of the average estimate for US$51.1 billion, Bloomberg News reported.

Net income in the fiscal third quarter was US$10.7 billion, or US$1.85 a share, while revenue rose 33 percent to US$49.6 billion, Apple announced after market close Tuesday.

Gross margin stood at 39.7 percent, topping the company’s outlook for 38.5 percent to 39.5 percent.

Total revenue from Greater China more than doubled to US$13.2 billion, according to the report.

Apple didn’t release unit sales of the Apple Watch, which was introduced in April. It included the results for the smartwatch in a broad category called “Other,” along with items such as Beats headphones and iPod sales.

Revenue in the category rose 49 percent to US$2.64 billion.

IPad sales continued to suffer, with tablet shipments falling 18 percent to 10.9 million, marking the sixth straight quarter of declines, Bloomberg noted.

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