Apple shares slip after disappointing earnings report

By Barry Eitel

SAN FRANCISCO (AA) – Shares of Apple ended Wednesday more than 2 percent below its previous close, hinting that investors are worried after the tech darling posted its first quarterly revenue decline in 15 years.

The company also announced Wednesday that it was delaying the release of its new AirPods wireless headphones, a bold new product that caused a flurry of attention when it was revealed in September. The headphones were scheduled to go on sale in late October, but the launch was postponed and no new release date has been announced.

“The early response to AirPods has been incredible,” Apple said in a statement first sent to the technology blog TechCrunch. “We don’t believe in shipping a product before it’s ready, and we need a little more time before AirPods are ready for our customers.”

Apple’s stock slipped further to $115.50 per share in after-hours trading amid the news of the delay. Shares were battered throughout Wednesday, dipping as much as 4 percent from Tuesday’s close. The decline was enough to rock the entire Dow Jones industrial average.

Apple released its fiscal fourth quarter earnings Tuesday, which ended in September. The results were disappointing, if not unexpected, and indicated that the tech giant is making less money than during the same period in 2015 – the first time since 2001 Apple experienced a quarterly decline.

Investors were also rattled because chief executive Tim Cook claimed Apple is struggling to keep up with the high demand for the new iPhone 7 Plus, a struggle that could affect the number of smartphones sold during the busy holiday season.

"The mix that we projected on iPhone 7 Plus is short of what the reality is,” Cook told investors during a call Tuesday. “So, we are chasing supply there.”

Apple will have plenty of opportunity to win back the blessings of Wall Street on Thursday, when it is expected to reveal a new Macbook Pro laptop and other products at a launch event.