Apple tumbles 7% after reporting record-breaking quarterly earnings

“Apple reported earnings for its fiscal fourth quarter Thursday that beat Wall Street estimates on both the top and bottom lines,” Sara Salinas reports for CNBC. “It also locked in a strategy of boosting prices to offset slowing sales — posting an eye-popping average selling price for the iPhone during the key September quarter.”
“But shares of Apple fell more than 7 percent — [briefly] falling below its historic $1 trillion market cap — following the release, after the company missed shipment estimates on iPhones, offered light guidance and announced major changes to its reporting structure,” Salinas reports. “The company is projecting total revenue for the first quarter in the range of $89 billion to $93 billion, extending just slightly below analyst estimates of $93.02 billion.”
“The company reported an ASP of $793 — a year-over-year increase of 28 percent — and well above analyst projections of $750.78, based on FactSet and StreetAccount estimates,” Salinas reports. “An ASP that high could indicate strong initial sales for Apple’s highest-priced smartphone models: the iPhone XS, starting at $999, and iPhone XS Max, starting at $1,099. Both went on sale about a week before the end of the September quarter. It also indicates users are settling into higher device prices.”
Read more in the full article here.
MacDailyNews Take: AAPL discount sale!
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