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Apple Shares Plunge Following iPhone Sales Miss

What can’t go on won’t

Peak smartphone is finally here. Apple is now starting to prepare for life as the smartphone version of Microsoft:

AAPL shares were already tumbling after hours on weak guidance and iPhone sales miss, when during the earnings call the stock was rocked lower when the company shocked investors with news that said it would stop providing unit sales numbers for iPhone, iPad and Mac.

While CFO Lucas Maestri “explained” on the earnings call that unit sales do not represent clear indication of a performance of the company and are less relevant, investors clearly disagreed and punished the stock, sending it back under the much discussed $1 trillion market cap.

Commenting on the Apple stopping unit sales, analyst Gene Munster said: “I was shocked, but it makes sense. Apple wants investors to focus less on iPhone units, and more on the overall Apple business (including iPhone) as a service. It’s going to take a few quarters for Apple to win investor confidence in this new way of analyzing the Apple story.”

The bigger risk for Apple is that it now relies exclusively on raising prices at a time when the global economy is said to be within 1-2 years of a recession. Meanwhile, if a big part of value is growing the ecosystem and services, the poor unit growth (and implied share loss) should be a harbinger of slowing service growth.

Doomberg

Written by Doomberg

I am Doomberg, one of the original founding members of Sparta Report, and have been here since the beginning. I am an insatiable news junkie and enjoy reading and writing about the US territories, the Caribbean, video games, smartphones, and of course conservative politics in general.

I also really like pictures of gas stations and claim full responsibility for the silly gas station motif. I'm presently trapped behind enemy lines in a blue state with no hope of escape! The ride never ends.

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