Shock as Apple misses its earnings forecasts

SHARES in Apple plunged 6.5 per cent in after hours trading last night as disappointing sales of its iPhone meant the tech giant missed its quarterly earnings target.

Around $27bn (£17.2bn) was wiped off the value of Apple when it announced its results after the stock closed at $394.78. In its first update since the death of co-founder Steve Jobs, it reported fourth-quarter iPhone sales of 17.07m, compared to the 20m expected by analysts. Apple said consumers had put off spending as rumours grew about the new iPhone 4S, which went on sale last week.

Overall quarterly revenue rose 39 per cent to $28.27bn but missed Wall Street’s prediction of $29.69bn. Net profit was up 54 per cent to $6.62bn.

Apple also said sales for the year to 24 September rose 66 per cent to $108.25bn. Net profit was up 85 per cent to $25.92bn.