*By Chloe Aiello*
Apple lost its hold on the $1 trillion market cap mark after the company's latest earnings report.
Shares tumbled more than 7 percent after the bell on Thursday, despite the company beating analyst estimates for both earnings and revenue. Apple ($AAPL) reported disappointing iPhone sales and weak guidance for the all-important holiday quarter.
While analysts, on average, were expecting sales of about $93 billion to round out the year, Apple said it would only meet those expectations under the best of circumstances. It forecast a range of $89 billion to $93 billion. CEO Tim Cook said weakness in emerging markets, unfavorable foreign exchange rates, and questions about whether the company can meet demand for iPhones all factored into that guidance.
For the current quarter Apple reported earnings of $2.91 per share on revenue of $62.9 billion, beating analyst estimates of earnings per share of $2.78 on $61.57 billion in revenue.
The company also posted just a slight bump in the ever-important metric of iPhone sales, selling just under 47 million units. But thanks to the more expensive, newer versions, the average selling price rose to $793, well above analyst estimates of $750.78.
Faced with stagnating iPhone sales and lengthening product replacement cycles, Apple has gambled that it can successfully boost margins by raising prices on premium products without alienating its loyal customer base. In September, [the company introduced three new iPhones](https://cheddar.com/videos/apples-services-business-the-key-to-its-continued-success) ー two of them priced at or above the original iPhone X, which dropped jaws with its $1,000 price tag when it debuted last year.
Another metric analysts are watching closely: Apple's services revenue. The business, which includes Apple Music and iCloud, has become increasingly important as momentum from its core hardware products like the iPhone and Mac slow. The unit brought in revenue of $9.98 billion in the latest quarter ー up 17 percent from last year but just below Street expectations.
Then there's its "other products" division, which includes wearables, like the Apple Watch and AirPods. Apple reported that business raked in $4.2 billion in revenue, a 31 percent increase from a year ago.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
