The Simple Psychology Behind Apple’s Fall
Apple Inc.’s (Nasdaq: AAPL) $1 trillion valuation is at risk, and it’s all thanks to one decision made during the company’s fourth-quarter earnings report. It wasn’t that the company’s numbers were bad. They were actually better than expected. For the quarter, Apple said it earned $2.91 per share on revenue of $62.9 billion. Analysts were looking for $2.78 earnings per share on revenue of $61.4 billion. The problem lies with partly with the iPhone, and the lack of sales thereof. Last quarter, Apple only sold 46.9 million iPhones versus expectations for 48.4 million. In the same quarter last year, Apple sold 46.8 million iPhones. In fact, declining smartphone sales have become a serious problem for Apple. So much so that the company announced that it would no longer breakout unit device sales in 2019. Apple played up the move as necessary as the company shifts toward becoming more services oriented. Indeed, services revenue rose to its highest level ever at $9....