Apple stock lose sheen over poor iPhone sales

Apple’s hint of returning a ton of cash to shareholders was not enough to move investors who worried more about the iPhone maker’s weak outlook amid reports of production cuts for its flagship iPhone X. Apple shares were down about 1.4 percent at $ 165.42 in early trade on Friday. The iPhone X was the first phone to get a major design overhaul since the launch of the iPhone 6 in 2015, and many expected it to lead to blockbuster sales. On Thursday, the Cupertinobased tech giant said it sold fewer iPhones over the holiday quarter than Wall Street expected, and sees revenue of $ 60 billion to $ 62 billion and gross margins of between 38 per cent and 38.5 per cent for its fiscal second quarter ending in March. Analysts were expecting $ 65.7 billion in sales and a gross margin of 38.9 percent for the March quarter. Analysts said the revenue guidance implied a low 50 million iPhone shipment forecast against a consensus of 58.5 million. “We now forecast 221 million iPhone shipments for fiscal 2018, versus the prior 235 million consensus.” On Thursday, Apple also said it was planning, over time, to “target a capital structure that is approximately net neutral,” adding that it will “take that balance down from $ 163 billion to zero,” referring to Apple’s level of cash net of debt. “iPhone sell- through appears to have declined in the December quarter, which, along with weaker- thanexpected second quarter revenue guidance, reinforces our view of a saturated market,” said an analyst.