Apple's stock dropped by 5% immediately after the company announced its September-ending quarter Thursday.
Revenues came in at $ 62.9 billion. But Apple sold 46.89 million iPhones during the September quarter, and analysts were looking for sales of 47.5 million phones, according to FactSet.
What spooked some investors? The company projected between $ 89 billion and $ 93 billion, while a Bloomberg survey of analysts found an average expectation of $ 92.7 billion.
The company makes its bets for consumer wants this year when it's laid out its New line of iPhones at its September press event. It upgrades the features of the X with the $ 999 5.8-inch XS. It was big with a 6.5-inch version of last-year's iPhone X-the $ 1
But the Xr did not go on sale until October, so the new low-cost device did not play into the September results. Apple's forecast for the holiday quarter.
Apple is seeing slowing growth in its iPhone business, but it's making up for that by selling higher margins, which seems to be working fine. The analysts said the analysts had an average selling price (ASP) of $ 793 for the September quarter, a big jump from $ 618 reported in the year-ago quarterback, and much more than the $ 729 that analysts had expected.
The iPhone still 60% of overall Apple revenues. However, the device is becoming a vending machine for Apple services like iCloud and Apple Music. Apple reported $ 10 billion for the Sept. quarter, and said it's well on its way to doubling its 2016 revenue by 2020.
"We're heading into the holiday quarter our future, "CEO Tim Cook said on the conference call with analysts.
Apple CFO Luca Maestri said Apple saw double-digit revenue growth in every major geographic region during the quarter. Revenues has grown 18% in Europe, 19% in the US, and 34% in Japan, Apple reported.
Maestri explained that he was still in the US shaky consumer confidence in some emerging markets, a strengthening US Apple's stock has lost 3% of its value in October, but is still up 31% for the year.