Peak Apple? Share price plunges 5 per cent on iPhone sales slowdown

Clara Guibourg
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Apple shares have nosedived in early trading following the revelation yesterday that the iconic iPhone would see its first ever decline in sales in the coming quarter.

Apple shares plunged 4.97 per cent in the first half hour of US trading, falling to $95.02 as fears of a slowdown for the tech giant have investors jumping ship.

The fall builds on a drop over more than four per cent in pre-market trading.

Read more: Have we reached peak Apple?

Quarterly earnings released yesterday showed iPhone sales growth falling to its slowest rate ever, and Apple confessed it predicted revenues would decline for the first time since 2003.

Investors have been concerned over stalling iPhone sales, as the firm is heavily reliant on its smartphone brand for sales.

Reports of slashed Apple production sent the firm's stock tumbling under $100 for the first time since 2014 at the start of the year, as investors did not take kindly to reports that the Silicon Valley firm was expected to cut production of both of the latest iPhone models, the 6s and the 6s Plus, by 30 per cent in the first quarter of 2016.

BTIG analysts have cut guidance targets for earnings per share and iPhone sales on the news, the second of which they expect to recover when the next iPhone is launched.

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