Apple has jolted investors with
lower than expected iPhone sales, underlining fears that the product which helped create the world's most valuable company may be losing its allure.
In one of its most eagerly anticipated earnings updates of recent years, Apple reported
no rise in profits and slightly missed revenue estimates, suggesting its period of hyper-growth is coming to an end. The news wiped $50bn from Apple's market value, as shares
collapsed 10% in after-hours trading.
Apple sold 47.8m iPhones over the Christmas quarter,
missing a forecast average of around 50m. 
Unusually for a company that has regularly outperformed analyst expectations, revenue growth of 18% year on year to $54.5bn was below the $54.9bn forecast, and profits were flat on the previous year at $13.1bn.
While momentum remained strong in the Americas with revenues up 15% to $20bn, there are signs that
rival manufacturers such as Samsung may be gaining ground on Apple in recession-hit Europe with lower-priced handsets. Growth in Europe slowed
from 55% last year to 11% in December.
Apple's stock has crashed by 30% since reaching its all-time peak of $705.07 in September, and last week fell below $500 for the first time in 11 months after reports that production of liquid crystal displays for its screens had been slashed for the beginning of this year after
lower than expected demand.
"
It's not going to be enough to turn the stock around," said Capital Advisors chief executive Keith Goddard.
"If Apple can convince investors it can maintain margins while moving downmarket, the stock is doing to great in 2013. If not, you'll have to be patient and wait for the investor base to turn over as growth investors move out of the stock, and long-term value investors move in."
In a sign that even Apple is not immune to the fall in demand for personal computers, the company sold 4m Macs, 18% fewer than last Christmas. The company blamed the arrival late in the quarter of its new line-up, and said once its latest high-resolution screen Macs were on sale, demand outstripped supply.
:hov:
@ ol girl smashin every nikka with an oled cell...
