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Apple stock price drops despite 33% growth in iPhone sector

Investors are confusing most of the time and when it comes to Apple, they seem hellbent on running away with the money at every turn. Despite having increased iPhone sales, growth in the Mac market and 4.2 million Apple Watch sales (opens in new tab), the stock has dropped 8 per cent to $121 (£77) per share.

Most analysts are claiming while the iPhone has shown 33 per cent year-on-year growth, it missed expectations from bullish Wall Street investors. It follows two quarters of incredible iPhone numbers, possibly making investors too eager to jump on the bandwagon.

Even still, most analysts are saying Apple is still a solid stock to invest in, with estimates of between $145 and $195 (£92 and £124) per share. Activist investor Carl Icahn said Apple should be worth $1.4 trillion (£900 billion) earlier this year, meaning a share price of over $220 (£140) per share—we doubt that will happen any time soon.

Apple is starting to become an iPhone-only company for the stock market, seemingly unaware that the iPad declined for another quarter in sales. The Apple Watch also missed most expectations, with Canalys claiming Apple would sell 7.2 million units (opens in new tab) before dropping that to an estimated 4.2 million earlier this week (opens in new tab).

The Mac continues its upward gains despite the PC industry declining, which is something. Not a lot of analysts pay attention to the Mac numbers, due to the iPhone making the lion’s share of the revenue and profit.

Apple managed to see major growth in Japan, Greater China, Europe and other South-East Asian countries. Smaller countries like Taiwan, South Korea, Thailand and Hong Kong noticed iPhone growth, and worldwide Apple is grabbing more Android customers than ever before.

David has been a technology journalist for over six years, covering a wide range of sectors. He currently researches apps, app sectors and app markets for Business of Apps, and has written for ITProPortal, RTInsights, ReadWrite, and Digital Trends.