Apple revises fourth quarter expectations, saying revenues could come in lighter than current forecasts, and misses some targets for iPhone sales, putting pressure on its stock despite an overall earnings beat. Bobbi Rebell reports.
Apple earnings came in better than forecasts. But the stock dropped after the results were released in part because Apple's forecast range for fourth-quarter revenue moved lower, and there was some disappointment at the rate of growth in iPhone sales. Manhattan Venture Partners Max Wolff still believes the stock is a good bet: (SOUNDBITE) MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SPEAKING: "The news is generally very good. 39.7 percent margin. That is phenomenal. That is forty percent margins. So, they didn't just hold. They beat on the margin, which is a big number here. They shipped a few less phones than everyone thought, so just under 48 million and people had kind of thought on a whisper basis it would be at least fifty. But, still, on a phenomenal 35 percent year over year growth. Huge revenue number, closing in on $50 billion on a quarterly basis, which is phenomenal." Sales in China more than doubled from a year earlier. Apple said its Apple Watch sales exceeded its internal expectations. The iPad continues to be a source of concern, where sales continue to fall.