Apple drops below $1tn value as phone sales disappoint

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Apple's market capitalisation briefly fell below the $1 trillion mark earlier this week, after the company announced it will no longer report on how many phones it had sold.

According to media reports, the information has sparked a sell-off among investors, sending shares down seven per cent in after-hours trading.

The move comes despite the company's profits and revenue rising compared to last year. Revenues are up 20 per cent ($62.9bn) and profits are up 31 per cent ($14.1bn).

It's also worth mentioning that Apple incresed the price of its devices, with the latest model, the iPhone XS Max, going for as much as $1,099.

Apple defended its decision saying the number of units sold is no longer a good indicator of market health, while analysts claim the move is to mask less than ideal performance.

"I can reassure that it is our objective to grow unit sales for every product category that we have," Apple's chief financial officer Luca Maestri told financial analysts.

"A unit of sale is less relevant today than it was in the past."

The smartphone market, in general, is in a downwards trend, as more and more markets get saturated.

IDC's latest figures show a six per cent decline in the total amount of smartphones sold, year-on-year. Vendors shipped a total of 355.2 million units during the third quarter of 2018.

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