Apple shares have fallen sharply after the company released a record-beating earning reports and an upbeat analysis of their forecasts.
Amidst concern of a global recession and in the wake of falling tech stocks, Apple's shares fell by 3.54 percent, closing at USD 155.64 yesterday. It is already down by 11.15 percent before the market opens today.
Analysts are worried that consumers will cut back on purchases like Apple iPods and Macs, especially as the growth rate of the iPod range has been decreasing.
The company has announced that it earned USD 1.58 billion on revenues of USD 9.6 billion in the last fiscal quarter, its highest ever and 35 percent higher than the corresponding quarter in 2006 - at this rate, Apple's revenues are bound to exceed USD 10 billion.
Steve Jobs also disclosed that more than 22 million iPods, 2.3 million Macs and an equal amount of iPhones were flogged during the quarter.
It seems that Apple is suffering from the Google effect, when investors are not satisfied by the performance of the companies - even if they outperform the rest of the industry - and still want more.
iPod revenues have also showed a much higher Average Selling Price for iPods - more than USD 181, as Apple moves from lower priced to higher, more feature filled iPods complete with larger screens and Wi-Fi access.