It was reality check time for Apple once again. The technology giant reported its earnings for the June quarter Tuesday.
Wall Street expected Apple to report sales to be US$35 billion at US$7.30 per share. This was according to an analyst survey by both Thomson Finance and Fortune. The consensus ranged from US$6.64 to US$8.22 per share and US$32.84 billion to US$38.24 billion, according to 40 plus analysts who follow shares of Apple.
Earnings for June quarter were expected to decline and that's what has been pressuring Apple shares. The shares were above their 52-week low. However, the shares were less than their 52-week high.
The expectation for a sequential earnings decline, as well as the drop in share price, was driven by two major concerns, according to Christopher Versace of Forbes. First, there was a lack of a new product category since the iPad. In addition, the health of the smartphone market was also in question.
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