Apple Shares Fall On Iphone Sales Miss. Buy The Dip?

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Oct 30, 2020 at 6:33 AM EDT

Shares in Apple Inc. fell after the company reported earnings that disappointed investors. Revenue in China missed analyst estimates and the company reported a drop in iPhone sales.

Shares in Apple Inc. (AAPL) fell after the company reported earnings that disappointed investors. Revenue in China missed analyst estimates and the company reported a drop in iPhone sales. Analysts were hoping for some guidance for the future but the company gave no forecast for the upcoming holiday quarter.

Sales of iPhone fell 21% - largely due to the anticipation of new models
Revenue from the iPhone was $26.4 billion vs an expected $27.1 billion
Mac, iPad, Services sales jump higher than expected
Greater China revenue fell 29% to $7.9 billion
Earnings of 73 cents per share beat analyst expectations

Apple shares fall on iPhone sales miss. Buy the dip?

Luca Maestri, Apple's chief financial officer, said that the new iPhone 12 Pro Max is set to do "incredibly well" in the Greater China region and forecasts a growth-based quarter there in December. Revenue from the region - a key market for Apple - is at its lowest since 2014.

Some analysts were disappointed the company did not provide guidance for the holiday quarter which is Apple's most important period. This year, the company is releasing the iPhone 12, a brand new iPad Air, Macs with Apple's own processors and a cheaper HomePod.

Apple's share price was up nearly 90% this year before a correction started in September with yesterday's closing price down around 15% from its all-time high at circa $138.

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