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.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International breaking news | euronews online world breaking news in video
- 3Caught red-handed: the Russian Major fighting in Ukraine
- 4Video footage shows massive explosion in Tianjin, China
- 5Ukraine puts top Russian general Gerasimov on ‘most wanted’ list
- 6Snowden, Assange and Manning statues unveiled in Berlin
- 7Who came out top in the US Republican television debate?
- 8Latest News Bulletin
- 9Why World Elephant Day matters
- 10International news | euronews, latest international news
- 11UK: at least 7 dead after plane crashes into road in Brighton
- 12Virginia:TV journalist and cameraman shot dead live on air
- 13ISIL militant group claims to have killed Croatian hostage in Egypt
- 14Earth Overshoot Day…Pushing Mother Nature too far
- 15Windows 10, three weeks on: the good, the bad and the ugly
- 16Bringing the trolls out of the dark: Russian ‘troll’ awarded 1 rouble damages
- 17As ‘Daily Show’ Jon Stewart’s tenure ends, scholars say goodbye to their research topic
- 18Momentum for Mars: Astronauts say mission is inevitable
- 19European Union News | euronews: latest breaking news and headlines about European Union
- 20Scientists find sinkhole cave under Mexico’s Kukulkan Castle Pyramid
Latest world news
Migrant Crisis Live: Calais news conference by French ministers and senior EU officials
Arrest warrants issued for two new Bangkok bombing suspects
Hungary summons French ambassador over border fence row
Freddie Krueger creator Wes Craven has died aged 76
Hundreds pay tribute to police officer killed at a Texas petrol station
Wires > Business
- 11:58 CET Two U.S. F-22 fighter jets arrive in Poland as part of European…
- 11:15 CET Analysis – Refugee crisis suddenly Merkel’s biggest challenge
- 10:44 CET Indonesian workers to stage mass protest against layoffs
- 10:18 CET Japan eyes defence budget hike to fortify island chain facing China
- 07:38 CET China party says no disrespect meant with Jiang sign removal
- 07:00 CET Cambodia says no plan to take more refugees from Australian…
- 06:22 CET China property developers to buy back Tianjin blast homes – Xinhua
- 03:35 CET ‘The Storm Makers’ puts Cambodia’s sex-trafficking under spotlight