Apple announced quarterly earnings on Tuesday after the markets closed. For the first time since 2003 the technology giant announced a dip in quarterly revenue. This coming on the heels of disappointing numbers from GOOGLE who announced worse than expected earnings last week.
Apple sold more than 51.2 million iPhones in the first three months of 2016, but in the first quarter of 2015 they sold 61 million — a dramatic decline indeed. Quarterly revenue was down 13 percent when compared to the same period in 2015. To make matter worse, Apple warned of a revenue shortfall of 13 percent or more in the current quarter. The one upside was Apple recorded $10.5 billion in quarterly profit — more than many analysts expected. Even so, Apple’s stock price took a beating — dropping more than 5 percent in after-hours trading. It closed the regular session at $104.35.
So with GOOGLE and APPLE both showing signs of weakening, what will come next? Presidential candidate, Donald Trump has been warning of a massive economic slowdown. Meanwhile, President Obama disagrees. He says his programs are stimulating economic growth. He points to a much improved unemployment rate of 5% nationally. However, the 5% rate does not take into account the high number of Americans who are currently out of the workforce (estimated 92,000,000) — these are people who are no longer looking for work and thus, not accounted for in the unemployment statistic.
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