CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Flat earnings push Apple stocks down

Article By: ,  Financial Analyst
January 28, 2014 9:45 AM

The share price of Apple fell in the US last night (January 27th) following the release of the latest earnings figures by the company.

It announced a flat set of results and this led to stocks in the firm falling by more than eight per cent as investors reacted negatively to the company's recent stagnation.

Apple revealed that it recorded profits of $13.1 billion (£7.9 billion) during the October to January quarter, which was slightly above the expectations of analysts.

However, the company also announced that it was lowering its sales outlook for 2014, which led to some investors electing to sell off their shares in the firm, which makes devices such as the iPhone smartphone and the iPad tablet computer.

Record sales

Apple boss Tim Cook revealed that the company has secured record sales for both the iPhone and the iPad, with 51 million iPhones and 26 million iPads sold. Sales of the iPod – the iconic digital music player launched by Apple in 2001 – fell by 55 per cent and Mr Cook admitted that the market for the device was shrinking.

Apple is now forecasting revenue of between $42 billion and $44 billion for 2014, which was slightly less than had been predicted by analysts ahead of the results.

A new deal with China Mobile has been an immediate success for Apple, with Mr Cook revealing that it has already had "the best week for activations we've ever had in China" this year.

While Apple shares fell by more than eight per cent on the back of the flat earnings, stocks remain close to the firm's 52-week high of 550.14.

"We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion," said Peter Oppenheimer, Apple's chief financial officer.

Apple has seen growing competition in both the tablet and smartphone markets in recent months, with Samsung emerging as its main competition in the sector.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024