Apple disappoints investors falling below $1trn value mark

Apple fell below its $1trn valuation mark yesterday (November 1), when its shares also dropped seven per cent in off-peak trading hours.

Despite the tech giant having recently launched its new iPhone in late September with revenue rising 20 per cent to $62.9bn year-on-year, and profits rising 31 per cent to $14.1bn, it has been suggested that weaker sales will emerge around Christmas.

Furthermore, the total number of smartphones sold by all makers, across the world, declined for the first time in 2017.

However, Apple has begun charging even more for its new phones, which has worked in its favour for profits. The company sold 46.9 million iPhones in the quarter to end of September.

Apple’s full 2018 financial year included profits increased by 23 per cent to $59.5bn, as revenue rose 16 per cent to $265.5bn.

Apple’s chief financial officer Luca Maestri, concluded: “I can reassure that it is our objective to grow unit sales for every product category that we have.

“A unit of sale is less relevant today than it was in the past.”