Apple Inc. (NASDAQ:AAPL) dropped more than 2 percent on Wednesday morning after the company’s quarterly results were released Tuesday afternoon. The company dropped 30 points off the Dow Jones industrial average. Apple lost $14.3 billion in market cap after Tuesday’s close.
Apple had reported quarterly earnings that beat analyst expectations Tuesday. Sales had barely made the cut with expectations. Investors are losing confidence due to Apple’s year over year revenue decline.
The demand for iPhone 7 had led Apple to beat expectations but it increased operation expenses as well. A rise in operating expenses has forced analysts to low their earnings per share estimates for 2016 – 2018. Although Apple had beat expectations, future guidance has been lowered.
In a report, Oppenheimer stated, “We believe more drastic design changes will come to the iPhone in 2017, which may include cameras capable of depth sensing and 360-degree capture, OLED display, and VR headset accessories. Some of our predictions (AI and a more open Siri) likely will come earlier than expected to the iOS 10.”
Can Apple find the perfect balance between sales and operating expenses to push into the next quarter release?