Apple Stock Down 10% in After Hours Trading Amidst Concerns of Flat Growth

After reporting record-breaking quarterly revenue and profit earlier today, Apple's stock has taken a 10% tumble in after hours trading. Apple posted a $13.1 billion profit for the quarter this year compared to a $13.06 billion profit in the same quarter of last year, yielding flat growth year over year.

afterhours
The flat growth, as pointed out by Apple, is largely because manufacturing costs have risen, even as revenue has risen 18%. The New York Times notes that analysts were worried that about Apple's profit margins, even after Apple warned that a significant overhaul of its product line would mean high manufacturing costs in the early lives of the products.

The results arrived with an unusual level of anticipation, even for a company as high-profile as Apple, because of anxiety among some investors about Apple’s ability to sustain its growth and create new hit products. Apple’s stock has lost about a quarter of its value since September, erasing more than $170 billion of its market value.

Business Insider notes that even though Apple's holiday quarter in 2012 had a week less than it did in 2011 that sales growth still wouldn't be at the point that it was.

Apple's 10% stock decline gives it a current market cap of $463.49 billion and a loss of nearly $50 billion in market capitalization from worried investors. Despite analysts' and investors' worries of year-over-year growth, The Wall Street Journal's Tom Gara notes that Apple's losses in market cap today were roughly equal the value of two Research in Motions and two Nokias.

Popular Stories

New Things Your iPhone Can Do in iOS 18

18 New Things Your iPhone Can Do in iOS 18.2

Wednesday November 27, 2024 5:05 am PST by
Apple is set to release iOS 18.2 in early December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls incoming as...
Whatsapp Feature

WhatsApp to Drop Support for These iPhones Starting May 2025

Monday December 2, 2024 2:57 am PST by
WhatsApp is set to end support for iOS versions older than iOS 15.1 from May next year, removing the chat platform's compatibility with several iPhone models in the process. From May 5, 2025, WhatsApp will no longer be compatible with iPhone 5s, iPhone 6, and iPhone 6 Plus models. Users with those devices won't be able to access the encrypted chat service after the specified date unless they ...
Apple AI Command Center Concept Mock 3

Apple Expected to Launch This All-New Device Next Year

Wednesday November 27, 2024 1:05 pm PST by
Apple is expected to kick off 2025 by launching an all-new smart home hub, also referred to as a "command center," as early as March. The hub is expected to feature around a six-inch display that can be attached to a tabletop base with a speaker, or mounted on a wall. The device is said to run a new "homeOS" operating system with a customizable widget-focused home screen, and it is expected...
iphone 16 pro models 1

12 Reasons to Wait for Next Year's iPhone 17

Friday November 29, 2024 5:17 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
airpods pro 2 gradient

AirPods Pro 3 Expected Next Year: Here's What We Know

Thursday November 28, 2024 3:30 am PST by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
iPhone 17 Pro Dual Tone Rectangle Feature 1

iPhone 17 Pro Already Rumored to Have These 8 New Features

Wednesday November 27, 2024 12:19 pm PST by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch for 10 more months, there are already plenty of rumors about the devices. An imaginative iPhone 17 Pro concept based on rumors Below, we recap key changes rumored for the iPhone 17 Pro models so far: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro ...
Cyber Monday Deals Feature 2022

Apple Cyber Week Deals Available Now: AirPods, iPads, and More

Sunday December 1, 2024 7:52 am PST by
Although Black Friday has ended, Cyber Week is here and you can find great deals on numerous Apple devices right now. This includes big savings on AirPods, Apple Watch, MacBook Air, iPad, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Specifically,...
Flip iPhone Thumb 1

Apple's 2026 Foldable iPhone Could Reinvigorate Stalling Market

Monday December 2, 2024 4:04 pm PST by
The foldable smartphone market has stalled with customer interest in foldables waning, but that could change when Apple debuts a foldable iPhone, according to display analyst Ross Young. In a report on the current foldable smartphone market, Young says that Apple is expected to "enter the foldable market" in the second half of 2026. Apple's "dominant position in flagship smartphones" could...
maxresdefault

The MacRumors Show: iPhone 17 Designs Revealed!

Friday November 29, 2024 9:34 am PST by
On this week's episode of The MacRumors Show, we discuss the recently leaked design of the iPhone 17 "Air" and iPhone 17 Pro. Subscribe to The MacRumors Show YouTube channel for more videos Earlier this week, a report from The Information's Wayne Ma revealed that the iPhone 17 Air will have a thickness of between 5mm and 6mm, which would make it the thinnest iPhone ever. In comparison, iPhone ...

Top Rated Comments

boccabella Avatar
155 months ago
It didn't matter what Apple reported today, they could have announced a cure for cancer and Wall Street would have sold off the stock.
Score: 32 Votes (Like | Disagree)
parapup Avatar
155 months ago
Apple is becoming Microsoft - or at least that's the fear. They sell a ton of their cash cow products and make good money - but that's just resting on their laurels. Where the hell is any innovation and disruption? People respect Apple for exactly that. Making profits on cash cows - that spot is for Microsoft.

The thing is they will sell some more iPads and iPhones but then when that's saturated they will badly need disruptive new product or at least leaps and bounds improvements to existing ones. And there are no winds of that for past couple years and counting.
Score: 29 Votes (Like | Disagree)
ghost187 Avatar
155 months ago
Flat Growth???

iPhone sales still grew 39% yoy. iPad sales grew 49% yoy. Macs down 1.1m (obviously since they stopped selling iMacs as soon as they announced new iMacs, and even when the new iMacs became available, there wasn't enough to go around, and with no new Mac Pro, they probably sold very little desktops).
They beat their guidance and beat analyst estimates. Revenue was a slight miss (you can blame iMacs for this). Next quarter will be a monster quarter for macs. Mac mini will also show its true sales potential.

Also, the company is trading 3.5X cash and about 8X earnings. Fundamentals will kick in eventually. If anyone had the cash, they would take over this company just based on those numbers.

Now, about flat growth. Ask yourself this. Will iPhone 5 outsell iPhone 4S? Yes! Will iPhone 5S outsell iPhone 5? Yes, just because they will not have supply chain issues than. Will iPhone 6 outsell iPhone 5S? Yes because it will be a new design with new hardware features.

Will iPad sales keep going up? Guaranteed! iPad mini at $329 will maintain majority marketshare this year. Next year iPad Mini 2 will be $329, and last gen iPad mini will probably be sold for $249, breaking through yet another price barrier, giving android no chance to compete above $200.

Mac sales will never go down again. Mac Pro will be updated this year as promised. MBA with Retina will be a hit. And iMacs wont go on a 3 month hiatus on the next update since it will retain the same design. Oh, and Windows 8 is loved by everyone on Earth, NOT!

Ok, just based off of all the things I have listed, there is nothing to worry about as an investor, except your own patience, and what I have listed alone guarantees Apple huge growth for years to come!!!

BUT, how about NEEEWWW products. There are so many product categories Apple is yet the dominate.
iTV - This could be big. Hey even if it is not, it will still sell 10m+ every year just because of how well it will integrate with all of your other Apple devices.
iWatch - This could be huge. At the right price point, we can see millions of people wearing iWatches if Apple comes out with something cool.
Arm Based MBA - A $500 MBA based off of A7 or A8 processor bury Microsoft.
iGlasses - Wearable smart glasses will definitely be a huge hit in the future as we seen a preview of what it is from Google.

Also, APPL might have a stock split this year, to get into the Dow Jones. Than the law of large numbers wont apply to the share price anymore, and could easily boost to stock to trade 15-20X share like it should, considering that this company is still a GROWTH company.

I am writing all of this because I am fed up with the stock manipulation of Apple. If the price of the stock goes any lower, Apple should just go private and buy all of its shares. If Apple as a company was torn apart right now, their cash intellectual property, retail stores, and inventory would be worth more than its market cap. Apple investors, stop listening to the media who don't own the stock, and so called analyst who know nothing about Apple.

Apple maps fiasco? Hmm. If you don't like Apple maps, download one of many free or payed GPS applications out there, and if you cant do that good luck with Android!

Scratch gate? Since when is any electronic scratch proof?

Boring OS? Just row of iCons? Than how come Windows was so successful for decades, and now they are getting bashed for changing their UI now?

Thank you for reading.
Score: 17 Votes (Like | Disagree)
pipa Avatar
155 months ago
This stock is a steal at this price. If/when apple attacks the TV market it is going to take that company into another stratosphere. Just imagine selling millions if tv's at $2,000 to $3,000 a set. I know ill be a day one buyer. And trust me when Steve was alive he said that he cracked the tv and knows what we need. Just remember in 07 when he cracked the cell phone what happened. With apples ecosystem in place and icloud a TV is the last piece of the puzzle and the possibilities of what can be done is incredible. FaceTime, iMessage,apps made for the set, safari. It's going to be amazing.
Score: 17 Votes (Like | Disagree)
TMar Avatar
155 months ago
no need to worry, it will be back up tomorrow around 10 or 1am

Who trades at 1 am?
Score: 17 Votes (Like | Disagree)
1Alec1 Avatar
155 months ago
Apple stock price is great, but I knew it would never get to 1000$ Why people even a acknowledge analysts is beyond me.

Analysts are typically wrong except when, in cases like these, they themselves affect the price to match the prediction. It's stupid.
Score: 15 Votes (Like | Disagree)