Apple Inc. shares suffered their steepest decline in more than a year on Thursday, falling approximately 8% in extended trading.
The sell-off came despite the company reporting quarterly results that exceeded analyst expectations for revenue, earnings per share, and iPhone sales.
Despite the top-line beat, the market focused on underlying weaknesses in key growth areas.
The primary drivers of the repricing were disappointing growth figures in China and softer-than-expected performance in the services division.
Furthermore, the company’s guidance for the fourth quarter failed to meet market hopes, casting doubt on the sustainability of its recent momentum.
Investors appear to be prioritizing forward visibility over past performance, interpreting the cautious outlook as a sign of broader demand headwinds.