Apple Shoots Down Larger iPhone; Changes Guidance

Shares of Apple AAPL were down about 5 perfect Wednesday afternoon after the company reported earnings. The drop accelerated during the conference call when the company's management made a number of key comments. Specifically, the company said it was changing the way it did guidance. In the past, Apple was known for sandbagging guidance -- giving incredibly conservative guidance that it virtually always beat, typically by a massive amount. Now, Apple said going forward it will give more realistic guidance. Rather than give a single data point that it was likely to beat, Apple said it will provide a range that it realistically expects to report within. Apple also talked about its products. When asked about Android competitors with larger screens challenging the dominance of the iPhone 5, Apple's CEO Tim Cook said that the iPhone 5 offered the most impressive screen on the market. Shooting down rumors of a coming iPhone with a larger screen, Cook said he believed the company had picked the “right size” screen for the phone. Shares of Apple traded near $460 in the after-hours Wednesday.