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04 Feb

Apple Still Solid at the Core

Although iPads and iPhones are some of the most desirable tech gadgets, it appears as if Apple’s invincible run may be over. The world’s largest tech company — and one that has hugely influenced in-vehicle electronics —  missed Wall Street's revenue forecast for the third straight quarter. The company released its earnings on Jan. 23, after iPhone sales fell short.

For its next quarter, which ends in March, Apple said it expects to bring in between $41 billion and $43 billion in revenue, below the $45.6 billion forecasted by Wall Street.

The news sent Apple's stock plummeting 10 percent in after-hours trading. Prior to the earnings release, shares of Apple dropped nearly $200 or about 29 percent. 

Not only that, Apple also undershot revenue targets in the previous two quarters which may spur questions at to what Apple has lined up for new product and what it can do to generate new sales.

It’s not all doom and gloom, though. Part of the issue, say analysts, is simply the high expectations that are placed on the company in terms of performance. Apple posted $54.5 billion in revenue, which actually represents a record quarter for the company. Apple shipped 47.8 million iPhones over the sales season, which ended in December. That number was up 29 percent from a year earlier, but below the 50 million that Wall Street had projected.

While iPhones and iPads are the core moneymakers for the company right now (iPhones account for roughly half the company’s revenue), some of Apple’s other products are fading slightly out of favor like Mac computers and iPods, both categories where sales have slowed.

Even as onlookers raise doubts about the company’s revenue growth, CEO Tim Cook was pleased with the numbers. “We're thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” Cook said in a statement. “We're very confident in our product pipelines as we continue to focus on innovation and making the best products in the world.”

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