SEVERE WX : Winter Weather Advisory View Alerts
CLOSINGS: View Closings

Apple shares fall 4% into correction territory

Apple's week went from bad to worse.The company's stock fell more than 4% on Friday. Apple released strong ear...

Posted: Feb 3, 2018 12:42 PM
Updated: Feb 3, 2018 12:42 PM

Apple's week went from bad to worse.

The company's stock fell more than 4% on Friday. Apple released strong earnings results on Thursday but failed to fully dispel lingering concerns about iPhone demand.

The decline, which came amid a broader market sell-off, pushed Apple into correction territory. That means the stock was down more than 10% from its most recent high, which was reached last month.

Apple posted record sales of $88 billion for the final three months of 2017 fueled in part by the higher price tag of the iPhone X, which went on sale during the quarter.

However, the total number of iPhones sold during the quarter declined 1% from the same period a year earlier. Worse still: Apple expects sales for the upcoming quarter to be between $60 billion and $62 billion, well below Wall Street estimates.

The weaker sales forecast and slight dip in iPhones sold fuel lingering investor concerns about demand for Apple's current iPhone lineup, including the $999 iPhone X model and the more affordable iPhone 8 and 8 Plus.

"From our perspective, the quarter was a mixed bag," Sherri Scribner, an analyst with Duetsche Bank, wrote in an investor note after the earnings results were released Thursday.

Related: How will Apple create its media empire?

The questionable iPhone demand was offset to some extent by a surge in the average price of each iPhone sold, as well as Apple's plans to return cash to shareholders as a result of the tax bill signed into law late last year.

"The quarter had enough of both positives and negatives to keep the bulls and bears firmly in their own camps for now," Scribner wrote.

Daniel Ives, an analyst with GBH Insights, now expects Apple to ship between 235 million to 240 million iPhones in the 2018 fiscal year, down from 255 million previously. But Ives says the higher price tags, tax repatriation and product launches later in the year could help make up for that.

"This is a hand holding period starting with tonight's call," Ives wrote in an investor note Thursday night. "We believe near term turbulence does not change our long term bullish thesis on Apple."

The stock slipped in the days before the earnings release as multiple news outlets reported Apple was cutting production for the iPhone X by half for the first three months of 2018.

Apple investors had previously thought the vastly redesigned iPhone X would help drive a "super cycle" of customers upgrading their smartphones.

Apple had gone several years without making a major change to the iPhone's look and feel before releasing the tenth anniversary edition iPhone X. The phone features a full bleed screen and offers the option to unlock the device by scanning your face.

But the iPhone X was a risky bet for Apple. It was Apple's most expensive iPhone to date and didn't go on sale until more than a month after the more affordable 8 and 8 Plus devices.

"Apple stumbled in it's most recent effort to expand the iPhone product line with 2 new models in 2017," Gene Munster, an Apple analyst and managing partner at Loup Ventures, wrote in a note Thursday.

Munster attributed the weaker iPhone sales in the holiday quarter in part to "the more complex buying decision between iPhone 8 and iPhone X."

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 454989

Reported Deaths: 6163
CountyCasesDeaths
Hennepin943781502
Ramsey40624748
Dakota33540354
Anoka31357368
Washington20533237
Stearns18091190
St. Louis13970250
Scott1217799
Wright11791107
Olmsted1078075
Sherburne829669
Carver704439
Clay658884
Rice624274
Kandiyohi558072
Blue Earth548033
Crow Wing490478
Otter Tail464268
Chisago459538
Benton423688
Winona394548
Douglas379366
Nobles374647
Mower373729
Goodhue356863
Polk330760
McLeod328147
Beltrami315748
Morrison314545
Lyon305539
Becker288939
Itasca287343
Isanti285643
Carlton284043
Steele278910
Pine270315
Freeborn254123
Todd233730
Nicollet229438
Brown218034
Mille Lacs215645
Le Sueur214216
Cass210724
Meeker201333
Waseca193216
Wabasha17463
Martin171926
Roseau166417
Hubbard150738
Redwood141127
Houston140014
Dodge13934
Renville138440
Chippewa133032
Cottonwood129018
Fillmore12698
Wadena120818
Rock112012
Aitkin111433
Sibley10997
Faribault109416
Watonwan10688
Pennington101016
Kanabec99618
Pipestone96823
Yellow Medicine94916
Murray9117
Jackson87310
Swift84518
Pope7475
Stevens7078
Marshall70315
Clearwater68814
Lake66315
Lac qui Parle66116
Wilkin6339
Koochiching60610
Lincoln4912
Unassigned47369
Big Stone4693
Grant4388
Norman4258
Mahnomen4167
Kittson37420
Red Lake3204
Traverse2613
Lake of the Woods1961
Cook1160

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 311430

Reported Deaths: 4433
CountyCasesDeaths
Polk46841465
Linn18065279
Scott15872172
Black Hawk14090243
Woodbury13129181
Johnson1230052
Dubuque11625159
Pottawattamie9166115
Dallas908972
Story881038
Cerro Gordo473572
Webster472477
Sioux459757
Warren459339
Clinton458168
Marshall431162
Buena Vista396330
Muscatine396178
Des Moines395143
Plymouth353270
Wapello350798
Jasper332859
Lee324632
Marion309353
Jones274950
Henry267131
Carroll258434
Bremer250148
Crawford234724
Boone222917
Washington222933
Benton213650
Mahaska197937
Jackson195032
Tama190259
Dickinson188829
Kossuth180644
Delaware176236
Clay172521
Wright167124
Fayette166024
Hamilton162330
Buchanan162224
Winneshiek160820
Harrison158562
Hardin157931
Cedar155619
Clayton153849
Butler151724
Page147115
Floyd141636
Cherokee140127
Mills138517
Lyon137533
Poweshiek135224
Hancock131924
Allamakee130930
Iowa127722
Madison123910
Calhoun12349
Grundy122628
Winnebago122229
Jefferson122125
Mitchell116837
Louisa116230
Cass115243
Chickasaw113712
Appanoose112640
Sac112215
Union111623
Emmet111332
Humboldt106819
Shelby105527
Guthrie104424
Franklin103618
Unassigned10160
Palo Alto92411
Montgomery89124
Keokuk86326
Howard85919
Monroe82220
Clarke8129
Pocahontas78211
Ida76030
Davis70321
Greene6977
Adair69620
Monona68518
Lucas66710
Osceola64711
Worth6194
Taylor5999
Fremont5246
Van Buren50215
Decatur4974
Ringgold45111
Audubon4228
Wayne42021
Adams3003
Rochester/St. Mary'S
Cloudy
20° wxIcon
Hi: 20° Lo: 1°
Feels Like: 10°
Mason City
Cloudy
17° wxIcon
Hi: 20° Lo: 6°
Feels Like: 2°
Albert Lea
Cloudy
18° wxIcon
Hi: 18° Lo: 5°
Feels Like: 5°
Austin
Cloudy
19° wxIcon
Hi: 20° Lo: 7°
Feels Like: 9°
Charles City
Cloudy
19° wxIcon
Hi: 22° Lo: 8°
Feels Like: 6°
Snowstorm to our south
KIMT Radar
KIMT Eye in the sky

Community Events