Disappointing iPhone sales in the run-up to the Christmas holidays caused Apple’s shares to tumble 12 percent on Thursday.
The sell-off was sparked by fears that Apple is losing its dominance in smartphones, with customers changing their preference to models with larger screens.
“We think Apple is losing the screen-size wars,” Jefferies analyst Peter Misek said. He noted that demand was moving away from the iPhone’s 3.5-inch and 4-inch screens to screens of 5 inches offered by rivals such as Samsung, HTC and Nokia.
Apple said it shipped a record 47.8 million iPhones in the December quarter. That was well below the average of analysts’ forecasts, which was for 50 million.
The shares suffered their biggest percentage drop in over four years, slicing more than $50 billion from the company’s market value.
The company’s profit margins were also hit, partly because the iPad is cannibalising its high-margin Macintosh computers.
Analysts said Apple’s growth would hinge on new products, but added that a new launch wasn’t on the horizon.
“To re-accelerate growth, Apple likely needs to launch new products, yet few seem likely before June,” Nomura’s Stuart Jeffrey said.
The company has been long rumoured to be working on a television but has so far deflected questions on its existence. Apple hasn’t launched a new line of products in almost three years, apart from a smaller version of the iPad.
Copyright © 2014 euronewsMore about:
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Sweden becomes first EU country to recognise the Palestinian State | euronews, world news
- 3Italy swamped by flash floods | euronews, world news
- 4Back to School for Romania’s new First Lady | euronews, world news
- 5What will you ask US Senator John McCain? | euronews, world news
- 6Turkish president Erdogan unveils his new palace of a thousand rooms | euronews, world news
- 7India PM Modi appoints Yoga minister | euronews, world news
- 8Vladimir Putin most powerful man in the world – Forbes | euronews, world news
- 9[Live] Rosetta’s Philae lands on comet 67P and enters the history books | euronews, world news
- 10European e-revolution people rise up | euronews, world news
- 11International tv news | euronews: European and International tv news bulletin
- 12Where is the best place in Europe for women? | euronews, world news
- 13Irony as organised crime prosecutor arrested for corruption in Romania | euronews, world news
- 14Obama’s ‘risky’ immigration gamble | euronews, world news
- 15Nadia Comaneci: gymnast of perfection and defector | euronews, the global conversation
- 16Putin plans to leave G20 talks early amid Ukraine pressure | euronews, world news
- 17Transcript of hanged Iranian woman’s final message released | euronews, world news
- 18International breaking news | euronews online world breaking news in video
- 19Syria: Islamic extremists pledge to press ahead with battle for Kobani | euronews, world news
- 20Edgars Rinkevics: “I am gay. Good luck all of you.” | euronews, world news
Wires > Business
- 08:01 CET Russia’s new push for Syria dialogue unlikely to be fruitful
- 07:31 CET Protests spread across U.S., more troops deployed in Ferguson
- 07:26 CET Five killed in clashes between Houthis, Sunnis in Yemen capital
- 07:22 CET Romania’s next president eyes power shift within weeks
- 07:18 CET Insight – Europe feels sting in the tail of Russia sanctions
- 06:56 CET Hong Kong student leaders arrested as police clear protest site
- 06:53 CET China considers suing ‘economic fugitives’ in the U.S., official…
- 05:48 CET Australia working on new drift modelling for MH370 wreckage