Apple Shares Down

Tech giant Apple’s shares went down after the company missed its targets. This is one of the few times that Apple did not meet its forecasts.

Shares of the company plunged five percent after its flagship product iPhones did not sell as much as expected. In the last quarter, only 26 million iPhones were sold versus the expected 28 to 29 million units.

According to industry observers, the decline may be attributed to buyers holding off new purchases to wait for the next generation of iPhone. Speculations are indicating that the new iPhone would be launched in autumn.

Apple said its third-quarter revenue increased to US$35 billion. However big the number may sound, this is lower than industry’s expectation of US$37.22 billion.

According to Thomson Reuters I/B/E/S, Apple’s gross margin was at 42.8 percent. This is also lower than the expected margin of 43.68 percent for the quarter.

The decline, however, does not surprise industry observers. Last year, Apple also did not meet its quarterly expectations because of the same level of anticipation for the newer model of iPhone. Some also said the economic slowdown in China and Europe may have contributed to lower sales.

It is worth nothing that this is only the second time since the last nine years that the tech giant missed its sales and profits estimates.

According to ISI Group analyst Brian Marshall, it is always a transition quarter if Apple does not release a new iPhone.