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Apple drops below $1tn value as phone sales disappoint

(Image credit: Image Credit: Pio3 / Shutterstock)

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 (opens in new tab), 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 (opens in new tab) 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.

Image Credit: Pio3 / Shutterstock

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.