Rotten results! Apple loses $50bn off its market value

Our columnist and LBC Radio presenter James Max was right, Apple is indeed rotting.

Last night, the company’s shares fell 10% during after-hours trading, causing it to miss its quarterly expectations and lose $50bn (£25bn) of its market value.

This comes in spite of strong sales with the company selling a record 47.8m iPhones while sales of the iPad touched 22.9 million. Although analysts were expecting revenues of about $55bn (£34.7bn), the company’s overall revenues were 18% higher than the same quarter in 2011 at $54.5bn (£34.4bn).

Apple boss Tim Cook, however, admits the company could have “sold more”.

Apple’s shares are now worth just $461.31 compared to September’s peak of $702.

“We obviously could have sold more than this because we couldn’t build enough iPad minis to come into demand balance,” Cook said.

Speaking about what Apple needs to do to boost figures, Trip Chowdhry, an analyst at Global Equities Research told the Daily Telegraph, “Apple will need to innovate.”

“For Apple to renew growth they need to come up with new devices.”