Apple stock down despite strong iPhone 6 sales

Doubt continues to mount about future of Apple Watch

i Phone sales may be up, but Apple stock is decidedly down after it reported fiscal third- quarter results that included a tepid financial outlook. Sales of the phone, especially the 6 and 6- Plus models, propelled another blowout quarter for Apple, allowing it to post a 33% jump in revenue, to $ 49.6 billion, and profits ($ 1.85 per share) that surpassed analyst estimates by 4 cents.

But the quarterly forecast contained a sales view that didn’t wow investors. Shares dove more than 6% in after- hours trading, to $ 122.11 per share. Apple reported after the markets closed. Apple expects revenue of $ 49 billion to $ 51 billion in its current quarter, shy of the $ 51.1 billion expected by analysts polled by Thomson Financial.

“To a degree, there are unrealistic expectations from the outside,” Gartner analyst Van Baker says. “It is increasingly difficult for Apple to surprise,” which could lead to similar problems for the company in coming quarters, Baker says.

iPhone led the way, again, with shipments of 47.5 million units — some analysts had projected 48 million to 50 million.

While there is little doubt about the strength of iPhone, the mystery remains over Apple Watch. Again, Apple did not disclose shipments of Apple Watch, raising a red flag among some analysts that the device is not selling as well as Apple hoped. Analyst Toni Sacconaghi Jr., like others, estimates Apple shipped 3 million watches.

The quarter underscored dueling narratives: The astonishing strength of iPhone 6 and 6- Plus sales and mounting doubt over the long- term sales cred of Apple Watch. This has led some industry experts to ponder if Apple is becoming a one- trick pony for products. iPhone has loomed large over the Cupertino, Calif.based company: 70% of Apple’s sales last quarter came from the device, and that is likely to continue as iPhone users upgrade to the 6 and 6- Plus models.

There also appears to be a healthy number of “switchers” from other platforms to iPhone, as well as vibrant sales in China and other growing markets.

The larger- screen iPhone 6 and iPhone 6 Plus have cut into iPad sales while many consumers have shied away from Apple Watch since it largely duplicates the functions of the iPhone. Sales of iPads fell for a fourth consecutive quarter, down 18% to 10.9 million.

DALE DE LA REY, AFP/ GETTY IMAGES Apple Watch sales weren’t disclosed, raising red flags that the device isn’t selling as well as expected.