Apple Inc.(NASDAQ:AAPL) missed the Street’s revenue estimates with iPhone sales coming in below expectations, and has cast doubts on its superior position in consumer electronics.
On Wednesday, Apple said it had shipped 47.8 million iPhones in the December quarter, 29 percent more than a year earlier. But it was lower than the 50 million analysts had projected.
First-quarter revenue climbed 18 percent to $54.5 billion, slightly below analyst estimates of $54.73 billion, though the projected earnings per share of $13.81 were higher than the Street forecast of $13.47. The Net income of $13.07 billion was virtually flat.
Apple sees revenue between $41 billion to $43 billion in the current quarter, lower than the Wall Street forecast of more than $45 billion.
The shares of the Cupertino company dropped 9.50% to $48.77 to $465 in the pre-market session.
Meanwhile, Netflix, Inc.(NASDAQ:NFLX) has posted profits in the December quarter after adding nearly 4 million customers in the United States and other countries.
The video rental and streaming company had earlier said that it was expecting a loss in the holiday quarter as it had spent substantially on its expansion into Scandinavia.
Netflix has earned $8 million or 13 cents per share in the quarter. Revenue increased 8 percent to $945 million from the year-ago period.
“They did surprisingly well with subscriber growth and profitability,” said Lazard Capital Markets analyst Barton Crockett. “It was a very good quarter.”
Wall Street analysts had expected Netflix to post a quarterly loss of 13 cents per share. Netflix had earned $41 million, or 73 cents a share, on revenue of $876 million in the same period last year.
Shares of the company jumped 35 percent to $139.80 before the bell. Yesterday, the stock closed at $103.26, up 6 percent before the earnings announcement.