Apple loses $1tr status after soft holiday forecast

Published: November 03, 2018 13:41:09 | Updated: November 05, 2018 15:53:04

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Shares in Apple Inc fell 6.0 per cent on Friday, cutting its market value back to less than $1 trillion after it forecast softer-than-expected sales for the holiday quarter.

The company fuelled nerves over iPhone sales by saying it would no longer release the figures, reports Reuters.

The dip in Apple’s shares to $208.50 knocked around $67 billion off its value, and put Amazon and Microsoft Corp back in the mix in the race among the United States’ big tech players to be the world’s most valuable company.

The Cupertino, California-based company blamed weakness in emerging markets and foreign exchange costs for a disappointing forecast for sales in the run-up to Christmas that are crucial to results for consumer electronics producers.

Most analysts were still upbeat on fourth-quarter results, and there was no obvious fallout for rest of the FAANG group of major US tech stocks.

Shares in Facebook Inc, Inc, Netflix Inc and Google-owner Alphabet Inc all rose on a generally buoyant Wall Street.

Eight brokerages cut their price targets for Apple, but only one - Bank of America Merrill Lynch - cut its rating on the stock, to neutral from buy.

The move announced on Thursday to stop reporting unit sales data for iPhones, iPad and Mac computer products was widely criticized, with some arguing it meant Apple expected sales of iPhones have now peaked.

Apple shares were down 6.4 per cent at $208.05 before the bell.

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