Apple shares fall on iPhone sales miss. Buy the dip?

October 30, 2020 10:30

Shares in Apple Inc fell after the company reported earnings that disappointed investors. Revenue in China missed analyst estimates and the company reported a drop in iPhone sales. Analysts were hoping for some guidance for the future but the company gave no forecast for the upcoming holiday quarter.

  • Sales of iPhone fell 21% - largely due to the anticipation of new models
  • Revenue from the iPhone was $26.4 billion vs an expected $27.1 billion
  • Mac, iPad, Services sales jump higher than expected
  • Greater China revenue fell 29% to $7.9 billion
  • Earnings of 73 cents per share beat analyst expectations

Luca Maestri, Apple's chief financial officer, said that the new iPhone 12 Pro Max is set to do "incredibly well" in the Greater China region and forecasts a growth-based quarter there in December. Revenue from the region - a key market for Apple - is at its lowest since 2014.

Some analysts were disappointed the company did not provide guidance for the holiday quarter which is Apple's most important period. This year, the company is releasing the iPhone 12, a brand new iPad Air, Macs with Apple's own processors and a cheaper HomePod.

Apple's share price was up nearly 90% this year before a correction started in September with yesterday's closing price down around 15% from its all-time high at circa $138. Did you know that you can speculate on the direction of Apple's share price using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!

How to trade Apple shares with Admiral Markets UK Ltd

If you are feeling bullish or bearish on the price of Apple's share price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in Apple, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Source: Admiral Markets MetaTrader 5 Web, #AAPL, Weekly - Data range: May 18, 2014, to October 30, 2020, performed on October 30, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.

Did you know that you can open a free demo trading account to test your trading ideas and theories regarding the price direction of thousands of markets in a virtual trading environment? Open your free account today by clicking on the banner below and receive free access to Premium Analytic tools and more!


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