As expected, Apple shares tumbled today after the company announced its most recent quarterly earnings report late Monday afternoon.
A drop in iPhone sales
During the second fiscal quarter of 2016, iPhone sales dropped for the first time ever.
At the closing bell, Apple was trading at $97.82, more than a 6 percent drop from yesterday’s close of $104.35
In the second fiscal quarter of 2016, which ended on March 26, Apple recorded $50.6 billion in revenue and $10.5 billion in profit. That’s compared to $58 billion in revenue and a $13.6 billion profit in the same quarter last year.
And the earnings drop was due in large part to the iPhone. During the second quarter, Apple sold 51.2 million handsets, 10 million fewer than in the same quarter of 2015.
Wall Street still positive
But even with the less than positive news, many analysts remain bullish about Apple’s growth in the near future. AppleInsider has a nice roundup of thoughts from a number of analysts.
The entire roundup is definitely worth a read, but many of the analysts are hopeful about the upcoming “iPhone 7.” Many, like Wells Fargo’s Maynard Um, believe the upcoming iPhone could spur upgrades from the huge installed base of iPhone 6/6 Plus owners.
“Now would be the time to get more bullish on AAPL shares,” analyst Maynard Um wrote. His analysis suggest investors should be excited about the “iPhone 7” product cycle, as “non-S” iPhone upgrades typically generate more interest with consumers.
Specifically, he’s bullish on the “iPhone 7” as he expects two-year contracts for iPhone 6 buyers will be coming to an end, and consumers who are looking to upgrade.