Wednesday, April 27, 2016

Apple Forecasts Second Sales Drop as iPhone Woes Deepen

Second-quarter sales slid 13 percent to $50.6 billion from $58 billion a year earlier, the company said Tuesday in a statement. That compared with the average analyst estimate of $52 billion. Net income declined to $10.5 billion, and IPhone shipments fell 16 percent. Sales in the third quarter, which ends in June, will be $41 billion to $43 billion, Apple said. On average, analysts estimated revenue of $47.4 billion, according to a Bloomberg survey.

The stock dropped as much as 8.3 percent to $95.68 Wednesday morning and was trading at $96.92 at 10:07 a.m. in New York. Concerns about decelerating smartphone demand have contributed to an almost 20 percent decline in Apple shares in the past 12 months. The stock fell less than 1 percent to $104.35 at Tuesday’s close in New York. That gave Apple a market capitalization of about $579 billion -- still the world’s largest company by that measure ....