Apple shares falls for the first time since 2003 as it records drop in sales of iPhone

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Yahoo Finance –

Apple’s 2nd Quarter conference call for financial year 2016 was yesterday and investors didn’t seem too pleased with the out outcome, as it missed it estimated targets.

The tech giant reported revenue of $50.6 billion and earnings of $1.90 per share. Analysts were looking for $52 billion and $1.99, respectively.

All of this was down from $58.0 billion and $2.33, respectively, from a year ago.

Shares are down by 6% in after-hours trading.

The key driver of declines was iPhone sales, which fell 16% year-over-year to 51.19 million units. iPhone revenue tumbled 18% to $32 billion. iPad sales fell 19% to 10.25 million units. Mac sales tumbled 12% to 4 million units.

Sales in the Americas, which represent Apple’s largest market, fell 10% to $19.0 billion.

Greater China, which is considered a growth market, saw sales plunge 26% to $12.5 billion.

Apple has returned $10 billion of its massive cash hoard to shareholders in the form of buybacks and dividends.

However, management expects business to remain lackluster with fiscal Q3 revenue in the range of $41 billion and $43 billion. This was much worse than the $47 billion analysts were forecasting.

Twitter

Twitter was also among the list of losers, although it reported a return to user growth but its shares fell up to 12% in after-hours trading after its first quarter results showed that spending by advertisers had declined.

The social network platform’s revenue for the three months to March rose 36% on a year earlier to $594.5m but that figure was at the bottom end of its previous guidance.

Twitter said it had 310 million average monthly active users at the end of the period, compared with 305 million in the fourth quarter when numbers were actually down.

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