The psychology behind this latest sell-off story may be found on the following reasons:
- Impression that Apple’s competitors are gaining ground.
- EPS growth decade long streak could not be broken, despite numbers came above $13.45bln consensus. Sales were unimpressive, in line with expectations of around $54.58 billion.
- As the WSJ notes, iPhones sold - company's star product - stood at 47.8 million units, "at the low end of analyst predictions of 47-50 million" they note.
- WSJ adds: "The fact that Apple, which has a history of absolutely blowing the Street away, stayed more or less where it was a year ago, has some folks apparently worried."
- Most importantly, projections for the second quarter are softer than anticipated, and it 'only' expects a Q2 revenue of $41-$43 billion, below the accepted threshold of $45.63 billion. Besides, the company gave no EPS guidance, quite unusual.
- "Apple is known for being conservative in giving financial guidance, but the view won’t help the pressure on expectations as investors question how the company will top past successes" Dow Jones' Tom Gyrta said.