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| Apple falls below $1tn despite revenue and profit rise | Apple falls below $1tn despite revenue and profit rise |
| (about 17 hours later) | |
| Apple briefly lost its $1tn valuation on Thursday when its shares fell 7% in after-hours trading despite posting record results. | Apple briefly lost its $1tn valuation on Thursday when its shares fell 7% in after-hours trading despite posting record results. |
| The tech giant's strategy of charging more for its phones has paid off, with revenues jumping in the last three months despite relatively flat sales. | The tech giant's strategy of charging more for its phones has paid off, with revenues jumping in the last three months despite relatively flat sales. |
| Revenues rose 20% to $62.9bn year-on-year, and profits rose 31% to $14.1bn. | Revenues rose 20% to $62.9bn year-on-year, and profits rose 31% to $14.1bn. |
| But a warning of possible weaker sales in coming months sparked a share price slide after official trading ended. | But a warning of possible weaker sales in coming months sparked a share price slide after official trading ended. |
| The sell-off accelerated after Apple said it would stop disclosing the number of units sold. | The sell-off accelerated after Apple said it would stop disclosing the number of units sold. |
| Apple executives defended their decision, arguing that the figures are no longer good indicators of the firm's financial health. | Apple executives defended their decision, arguing that the figures are no longer good indicators of the firm's financial health. |
| Analysts, however, warned that outsiders may view it as a move that masks less sunny performance. | Analysts, however, warned that outsiders may view it as a move that masks less sunny performance. |
| The total number of smartphones sold by all makers globally declined for the first time in 2017. | The total number of smartphones sold by all makers globally declined for the first time in 2017. |
| But Apple's strategy of charging higher prices for its phones has helped it to shrug off flagging demand. | But Apple's strategy of charging higher prices for its phones has helped it to shrug off flagging demand. |
| The firm sold 46.9 million iPhones in the quarter to end-September, a modest rise on the 46.7 million sold for the same period last year. | The firm sold 46.9 million iPhones in the quarter to end-September, a modest rise on the 46.7 million sold for the same period last year. |
| The California-based company is also making more money from "services" such as the App store, Apple Music and Apple Pay. Services revenue hit a record $10bn in the quarter. | The California-based company is also making more money from "services" such as the App store, Apple Music and Apple Pay. Services revenue hit a record $10bn in the quarter. |
| For the firm's full 2018 financial year, profits increased 23% to $59.5bn, as revenue rose 16% to $265.5bn. | For the firm's full 2018 financial year, profits increased 23% to $59.5bn, as revenue rose 16% to $265.5bn. |
| "I can reassure that it is our objective to grow unit sales for every product category that we have," Apple's chief financial officer Luca Maestri told financial analysts. | "I can reassure that it is our objective to grow unit sales for every product category that we have," Apple's chief financial officer Luca Maestri told financial analysts. |
| "A unit of sale is less relevant today than it was in the past." | "A unit of sale is less relevant today than it was in the past." |
| 'Weakness' | 'Weakness' |
| Despite the record figures, shares in the firm sunk in after-hours trading, falling by 4% and then by more than 7%. They quickly started to rebound, lifting the firm's market value back above $1tn. | |
| The decline was blamed in part on a disappointing forecast for the important Christmas season. | The decline was blamed in part on a disappointing forecast for the important Christmas season. |
| Apple said it expects sales of $89bn to $93bn for the quarter that ends 31 December, against Wall Street's $93bn forecast. | Apple said it expects sales of $89bn to $93bn for the quarter that ends 31 December, against Wall Street's $93bn forecast. |
| It posted sales of $88.3bn in the quarter last year. | It posted sales of $88.3bn in the quarter last year. |
| Chief executive Tim Cook said that Apple is "seeing some macroeconomic weakness in some of the emerging markets" such as Turkey, India, Brazil and Russia. | Chief executive Tim Cook said that Apple is "seeing some macroeconomic weakness in some of the emerging markets" such as Turkey, India, Brazil and Russia. |
| He said some of that is due to currency fluctuation. | He said some of that is due to currency fluctuation. |
| Chief financial officer Luca Maestri said Apple also faces some supply uncertainty related to the roll-out of its latest products. | Chief financial officer Luca Maestri said Apple also faces some supply uncertainty related to the roll-out of its latest products. |
| The firm, which relies on China for manufacturing, is at risk as trade tensions between US and China rise, though its products have so far been spared from tariffs. | The firm, which relies on China for manufacturing, is at risk as trade tensions between US and China rise, though its products have so far been spared from tariffs. |
| Mr Cook said he remains optimistic that the two countries will resolve their issues. | Mr Cook said he remains optimistic that the two countries will resolve their issues. |
| So far, Apple's business has not been affected he added, pointing to a 16% revenue rise in its Greater China region in the most recent quarter. | |
| Apple's App store has felt the impact of a "moratorium" on Chinese approvals for new games, but that is a domestic issue, he added. | Apple's App store has felt the impact of a "moratorium" on Chinese approvals for new games, but that is a domestic issue, he added. |