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Apple Inc. shares fell more than 3% in extended trading after a cautious outlook from executives overshadowed quarterly revenue that topped $100 billion for the first time.
In an e-mailed note to employees on Monday, Chief Executive Officer Tim Cook called Apple's accounting "disappointing" and cited "moonshot" announcements that will spur sales. The company took major scalps on both trackside device pricing and prediction tools. MaxON, a unit of Ericsson AB, has been a culprit for the iPhone's loss credibility.
"On this basis, we came in at the low end of the wide range of expectations and we are optimistic for the second quarter," Cook said.
The gains surprised analysts, but they're still well short of reports of more than 20% gains filed in advance of the earnings results on May 24. Apple shares were up 35% over the past 12 months, while the Standard & Poor's 500 Index climbed 3.5%.
Difficulties with Iphones
Apple's struggles with the iPhone, a vital device family for American consumers, have been the most concerning for investors. Rumors of delays with Apple's product rollout, including a July release date, worsened grinding sales of the older platform quarter after quarter.
According to data compiled by Bloomberg, the average selling price of iPhones in the U.S. fell 52% from last year, as it expanded the market for devices through upgrades and competition. While it climbed 47% for the 34 million iPhones it shipped in the first three quarters, 2014 was the first year with less upgrading, the data shows.
Analysts surveyed by Bloomberg forecast a profit of 60 cents a share on $25.3 billion in revenue, when factoring in falling unit sales. Apple shares slipped 0.7% to $137.94 at 12:26 p.m. in New York, making them the worst performer in the Nasdaq 500.
The iPhone numbers were more mixed and analysts said they didn't rule out a closer reading of IPhone units at the end of this quarter.
"We now have our first look at the consumer phone quarter revenue based on contracts," said Myles Udland of Cowen and Company Inc. in a note.
Among other things, Apple trailed the industry in its replacement rate for smartphone handsets, without offering specifics beyond a glimmer of regression from a bigger rebound in the third quarter. Devices sold in the second quarter tied China -- where the iPhone's absence is particularly sore -- as the market's weakest region, Cowen said.
"This trend is catching up with new iPhone shipments, which provides
Apple Inc. shares fell more than 3% in extended trading after a cautious outlook from executives overshadowed quarterly revenue that topped $100 billion for the first time.
In an e-mailed note to employees on Monday, Chief Executive Officer Tim Cook called Apple's accounting "disappointing" and cited "moonshot" announcements that will spur sales. The company took major scalps on both trackside device pricing and prediction tools. MaxON, a unit of Ericsson AB, has been a culprit for the iPhone's loss credibility.
"On this basis, we came in at the low end of the wide range of expectations and we are optimistic for the second quarter," Cook said.
The gains surprised analysts, but they're still well short of reports of more than 20% gains filed in advance of the earnings results on May 24. Apple shares were up 35% over the past 12 months, while the Standard & Poor's 500 Index climbed 3.5%.
Difficulties with Iphones
Apple's struggles with the iPhone, a vital device family for American consumers, have been the most concerning for investors. Rumors of delays with Apple's product rollout, including a July release date, worsened grinding sales of the older platform quarter after quarter.
According to data compiled by Bloomberg, the average selling price of iPhones in the U.S. fell 52% from last year, as it expanded the market for devices through upgrades and competition. While it climbed 47% for the 34 million iPhones it shipped in the first three quarters, 2014 was the first year with less upgrading, the data shows.
Analysts surveyed by Bloomberg forecast a profit of 60 cents a share on $25.3 billion in revenue, when factoring in falling unit sales. Apple shares slipped 0.7% to $137.94 at 12:26 p.m. in New York, making them the worst performer in the Nasdaq 500.
The iPhone numbers were more mixed and analysts said they didn't rule out a closer reading of IPhone units at the end of this quarter.
"We now have our first look at the consumer phone quarter revenue based on contracts," said Myles Udland of Cowen and Company Inc. in a note.
Among other things, Apple trailed the industry in its replacement rate for smartphone handsets, without offering specifics beyond a glimmer of regression from a bigger rebound in the third quarter. Devices sold in the second quarter tied China -- where the iPhone's absence is particularly sore -- as the market's weakest region, Cowen said.
"This trend is catching up with new iPhone shipments, which provides
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