Apple Shares Fall on Forecast for Quarter

Apple Inc. blew past Wall Street's bullish expectations in the first quarter with a 57 percent jump in profit, but a dramatically lower forecast sent shares plunging on fears about slowing consumer spending on electronics. The report, released after the market closed Tuesday, reinforced investors' worries that even a hot company like Apple isn't immune from sluggishness in the United States economy or fears of a recession. The company forecast profit of 94 cents per share, far short of the $1.09 per share that analysts were expecting. Revenue is also expected to be lower, coming in around $6.8 billion, compared with the $6.99 billion forecast by analysts. Apple's chief financial officer, Peter Oppenheimer, said the forecast still reflected rapid growth at the company.

"Our business performed very well in the December quarter, and we remain very confident in our products and our strategy," Mr. Oppenheimer said in an interview. Shareholders had hoped Apple's results would be a high point in a market otherwise marred by bad news. Apple shares fell $12.66, or more than 8 percent, to $142.98 on the disappointing forecast in after-hours trading Tuesday. Shares of Apple's stock had already fallen $5.72, or more than 3 percent, to close at $155.64 during regular trading. Investors' concerns Tuesday about Apple's future overshadowed a robust holiday season, marked by soaring sales of Macintosh computers and continued rising sales of iPod digital music players. The chief executive, Steven P. Jobs, said the company notched the highest sales and earnings figures in the company's history.

View: Full Story @ New York Times

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15 Comments

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Time to start going on shopping sprees, boys. Its been 6 years since shares of dozens of companies have been so low and affordable and if you are looking long term, this is starting to look good.

exactly. really makes me wish i could buy some stock... I think its a perfect time for a 23 year old like me to start building a portfolio (at least a variety of stocks).

Apple shares were hit hard so far this year with the less than lackluster announcements at MacWorld and now the economy problems. Microsoft and other tech companies will probably take a dive too.

pretty much every stock in every market in the world is going down , due to fears of a possible recession in the US causing a global recession...

(whocares78 said @ #3.1)
pretty much every stock in every market in the world is going down , due to fears of a possible recession in the US causing a global recession...

i know but this should have help the stock stay at a standstill at least

(Rudy said @ #3.2)

i know but this should have help the stock stay at a standstill at least

it may have stopped it from going down too much, but you have to consider the ammounts lost e.g. the aussie market lost somethign like 10 billion dollars yesterday..

(whocares78 said @ #3.3)
it may have stopped it from going down too much, but you have to consider the ammounts lost e.g. the aussie market lost somethign like 10 billion dollars yesterday..

actually it was $100 billion... it's lost 240 billion this year :confused: 12 or 14 days of straight losses on the all ordinaries i think!

You don't call what we have today "lowest" do you?

Consumer recession talk just got started in mainstream (and unlike Microsoft or Google, Apple is really a consumer only company). 2008 will be interesting to watch.