Apple shares closed down more than 12 percent on Thursday, slicing over 50 billion dollars from the company’s value.
The market’s disappointment is no surprise, as the tech giant posted its slowest profit growth since 2003 late on Wednesday.
The sell-off was sparked by fears that Apple is losing its dominance in smartphones, with customers switching to rivals such as Samsung, which offer more variety and bigger screens.
Apple’s poor results also came despite the launch of the iPad mini.
The company said it shipped a record 47.8 million iPhones in the December quarter, but that was well below analysts’ forecasts.
Expectations heading into the results had been subdued by news of possible production cutbacks by some component suppliers in Asia. That triggered fears that demand for the iPhone and the iPad could be slowing. The iPhone accounts for half of Apple’s revenue.
“It’s going to call into question Apple’s dominance in the space. It’s still one of the strong players, the others being Samsung and Google. It’s still a two-horse race, but Android continues to grow rapidly,” said Sterne Agee analyst Shaw Wu.
“If you step back a bit, it’s clear they shipped a lot of phones. But the problem is the high expectations that investors have. Apple’s conservative guidance highlights the concerns over production cuts coming out of Asia recently,” he added.
Apple shares have dropped by more than a third since mid-September as investors fret that its days of hyper growth are over and its devices are no longer as ‘must-have’ as they were.
- 1Russia-Turkey trade in question as Moscow to ‘reconsider’ ties with Ankara
- 2Spain’s solar energy firm Abengoa begins insolvency proceedings
- 3Nestlé praised for admitting slave labour used in Thai supply chain
- 4Barclays fined 103m euros for failing to run checks on rich clients
- 5OPEC ‘set to keep pumping oil’ despite global glut
- 1New 20 euro notes come into play on Wednesday
- 2Russia-Turkey trade in question as Moscow to ‘reconsider’ ties with Ankara
- 3Mass hotel and business cancellations in Paris post-attacks
- 4Telegram messaging app struggles to block ISIS sites
- 5Lyon cancels ‘Fête des Lumières’ lights festival over security fears
- 1Coordinated terror attacks leave dozens dead in Paris
- 2euronews live TV - News | euronews : the latest international news as video on demand
- 31000-year-old Bible found in Turkey
- 4Bomb and several shootings in central Paris – reports of fatalities and injuries
- 5International news | euronews, latest international news
- 6world Weather | euronews: world ten day weather forecast
- 7Police hunting Paris attacks mastermind battle with suspects in heart of Paris
- 8European Union News | euronews: latest breaking news and headlines about European Union
- 9latest sci-tech news : euronews : the latest international news as video on demand
- 10New temporary spiritual leader of Muslim Brotherhood appointed
- 11Humans consume more than planet can produce on ‘Earth Overshoot Day’
- 12Thousands in Bucharest blame corruption for Friday’s nightclub blaze
- 13‘Anonymous’ hackers’ group declares ‘war’ on ISIL
- 14‘Maxed-out:’ Jordan’s King Abdullah II’s frank warning over Syria crisis
- 15International breaking news | euronews online world breaking news in video
- 16Business news and finance news | euronews: international economic and finance news
- 17Special Reports : euronews : the latest international news as video on demand
- 18Iraq: deadly car bombs kill more than 60 in Baghdad
- 19Middle East - News | euronews : the latest international news as video on demand
- 20No Comment | euronews: international news images without commentary
Wires > Business
- 23:58 CET Murdoch: Tribune papers likely to be sold, LA Times split off
- 21:48 CET Brazil to sue BHP, Vale for $5 billion in damages for dam burst
- 20:41 CET Britons head online in hunt for Black Friday bargains
- 19:49 CET Nissan board to discuss French Renault power struggle – paper
- 19:43 CET Exclusive: Lazard works with Sanofi on $12.7 billion animal health…
- 19:40 CET Class action suit against Barclays alleges forex rigging losses
- 19:37 CET Exclusive: Gazprom’s Medvedev to meet EU antitrust chief next…
- 19:06 CET Carney continues to see strong UK domestic demand