Apple Leaves Wall Street Unimpressed As Stock Drops In Early Trading

On Monday, Apple announced record quarterly sales for the iPhone and iPad, an unexpected uptick in Mac sales, and a profit of $13.1 billion on revenue of $57.6 billion. None of this has impressed Wall Street. The company’s stock price was down around 8 percent in early Tuesday trading. So what’s the problem? The experts were expecting Apple to announce iPhone sales of at least 55 million units. Instead, they announced record sales of 51 million units. Speaking to CNBC, Bert Dohmen, president and founder of Dohmen Capital Research Institute, notes:

Apple hasn't had any technological innovations since Steve Jobs left, and this is a company that's getting beaten by its competitors. Now, we hear the next big item (iPhone 6) is going to have a larger (screen) size, Samsung has had that for two years.

BGC Financial analyst Colin Gillis agrees, saying:

The functionality gap between [Apple and] the low price competition is getting smaller and the pricing gap is getting wider. What we need from Apple is not just to continue to sell iPhones and iPads into its customer base, we need new product.

With comments like this, Apple investors should expect a very bumpy ride in the coming days. For more on Apple's first quarter earnings report, please see our original article.

Related articles