Apple market value slips below $1 trillion amid selloff

Apple shares tumbled Friday a day after quarterly results showing strong profits but weaker-than-anticipated iPhone sales and a disappointing outlook for the key holiday period. In midday trade, Apple skidded 7.3 percent to $206.07, slipping below the $1 trillion milestone it topped in August to around $995 billion. Jeff Williams, chief operating officer of Apple Inc., speaks during an Apple event at the Steve Jobs Theater at Apple Park on September 12, 2018 in Cupertino, California. Apple is expected to announce new iPhones with larger screens as well as other product upgrades. /Getty Images/AFP The firm said net profit climbed 32 percent to $14.13 billion on revenue that was up 20 percent to $62.9 billion with help from growing sales of digital content and services to users and other Apple gadgetry. However, the market was disappointed that Apple fell short of expectations, with sales of 46.9 million iPhones and a forecast for the key holiday season that was not as robust as anticipated. “Apple will have trouble maintaining its recent valuation bump if the market clearly sees declines in shipments,” said analyst Richard Windsor on his Radio Free Mobile blog. Other analysts said the outlook remains positive for Apple as it diversifies its revenue base with more services such as streaming music and Apple Pay, and moves toward the launch of a video service that could compete with Netflix. “Services revenue continues to increase at pace,” said Neil Saunders of the research firm GlobalData. “We believe this represents a massive forward opportunity for Apple and, as such, welcome the news that the company is looking into streaming video services.”

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