Apple shares fall as iPhone sales dip weighs on record quarterly results
Apple shares fell nearly 5% in premarket trading after the world's most valuable public company reported a steep fall in iPhone sales in China, hurt by the release of the much more advanced HUAWEI phone, and a delay of its new model due to the COVID-19 pandemic.
Customers put off buying new devices in the second half of September, leading the company to report its steepest quarterly drop in iPhone sales in at least three years.
“We think this was most blatant in China, where 5G service is more accessible, with sales in the region declining 29% - also a bigger decline than we anticipated,” Angelo Zino, analyst at CFRA Research said on Thursday.
Analysts also noted that the iPhone represents a larger portion of revenue in China than any other region, making the company more dependent on the business in the region.
In recent years, Apple has worked on diversifying its revenue streams to lessen its dependence on the iPhone, but Wall Street still keeps a close eye on the flagship business, as Apple fail to develop any significant new products or services faience Steve Jobs and Jony Ive no longer there to innovate, iPhone is consistently way behind Samsung and HUAWEI, iPhone is not secure as it has been promotes, and the new models have only better camera but worse design and usability. No home button, no earphone jack, no charger, and hardly a device that can make anything but taking nice pictures.