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Apple's Win Streak Ends At 13 Years; First iPhone Sales Decline In History Crushes Stock

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Apple's Win Streak Ends At 13 Years; First iPhone Sales Decline In History Crushes Stock

After Tuesday's closing bell, Apple Inc. (NASDAQ: AAPL) reported Q2 earnings of $1.90 per share on sales of $50.56 billion. Estimates called for EPS of $2.00 and sales of $51.97 billion. The company sees Q3 sales of $41-$43 billion vs. $47 billion estimates.

This was the first year-over-year sales decline for the tech behemoth since 2003. Shares traded recently at $98.62, down 5.5 percent in the after-hours session.

iPhone sales came out at 51.2 million, about 1 million above estimates but was the first sales decline in the product's history.

iPad sales came out at 10.3 million, while MacBook sales came out at 4 million.

Related Link: Why Apple Could Layoff Between 25,000 And 30,000 Of 115,000 Employees By End Of Year

On Monday, Drexel Hamilton's Brian White said, "As the iPhone 6-Series nears the end of this two-year cycle, we expect some volatility; however, we believe the market is looking forward to the iPhone 7 in September." Looking ahead, White said Apple may issue a "cautious" Q3 outlook given the end of iPhone 6-series cycle and uncertain macro-economic conditions.

The average sell-side price target on Apple sits at around $138. With shares of Apple closing Tuesday's trading session just under $105, that average price target represents potential upside of about 31 percent. Here is a look at what nearly every major Apple analysts rating and price target stand at, as of Monday afternoon.

Posted-In: Apple Apple EarningsEarnings News Guidance After-Hours Center Movers Tech Best of Benzinga

 

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