U.S. stock futures fall as Apple results disappoint

But the numbers aren’t far past what was expected, revenue of $49.5 billion.

“The question now is if the markets are fully valued and can they move higher without earnings growth”, said Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California, which oversees $1.1 billion. Software updates for OS X, Apple’s operating system for its personal computers, also were down during the period.

The revised projection comes a day after Apple reported its profit rose 38% for the fiscal third quarter, though it fell short of expectations for iPhone sales.

Apple said its Watch accounted for well over 100 percent of the growth in its “Other Products” category, which offset a decline in iPod sales.

Merrill Lynch estimates sales of around 3 million units of Apple Watch. But analysts had forecast that Apple would sell nearly 49m, with some predicting that up to 52m would be sold in the period.

Big gains in China came despite stock market woes there.

Analysts had expected Apple to sell even more iPhones and were looking for a brighter forecast than was given for the current quarter.

Global Equities Research managing director Trip Chowdhry has estimated Apple could sell 20 million to 25 million of the watches in the final three months of this year.

According to a new report, Apple has become the leader in the smartwatch market with the launch of a little new gadget known as the Apple Watch.

This time, on Apple’s FQ3 2015 earnings call, he again stayed the course but suggested an upgrade cycle will spark higher sales.

“We grew 87 percent in China“. The June quarter probably marked the last full quarter of the iPhone 6/6+, and expectations are that the newest iteration- -the 6s-will be released sometime in the fall.

Analysts, for the most part, remain as upbeat as ever on Apple Inc (AAPL.O) after investors knocked more than $65 billion off the company’s market value in initial reaction to the company’s quarterly results on Tuesday.

The purchase of the Nokia business has been seen as a failure, with Microsoft failing to break the dominance of rivals including Apple and Google.

The Apple boss said last autumn that he did not want to reveal detailed figures for the watch, which went on sale on 24 April, to avoid giving competitors inside information.

A boom in iPad consumer sales isn’t likely to result from Apple’s long-rumored, 12.9-inch iPad Pro tablet, said to be poised for mass production in the second half of this year. Even if that pre-order estimate is off, I seriously doubt it would have been below 1 million units (the supply bottlenecks wouldn’t make sense if this was lower), which would give us an estimate of roughly 1.5 million sales for the remainder of the quarter.

The average selling price for an iPhone was $660 in Q3, an increase of $99 year over year, despite a significant negative foreign exchange impact, Apple CFO Luca Maestri said.