From CNET: By virtually any measure, Apple posted solid financial results. But for the investors who follow the company, solid just isn't good enough.
Apple's third quarter is typically its slowest. It's sandwiched between the Dad-and-grad shopping season, and the back-to-school and iPhone launch. Yet Apple on Tuesday posted a quarter that most of its rivals would be ecstatic to report. Its revenue was a third higher than the same period last year. It sold 47.5 million iPhones, 35 percent more than a year ago. Sales in China more than doubled. And Apple said it would generate $49 billion to $51 billion in revenue in the current quarter.
Then Apple's shares dropped 6.9 percent to $121.80 in after-hours trading, wiping away roughly $52 billion in market value.
So what happened? That third-quarter revenue was only just in line with expectations, not much higher. And iPhone sales were about 2 million short of what Wall Street anticipated. Apple CEO Tim Cook acknowledged that China, while a huge market for Apple, could see some "speed bumps" because of economic woes. Its fourth-quarter forecast looked a little light too.
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