Apple whiffs on iPhone sales

Apple’s earnings report for the June quarter is out, and the company just revealed that it’s sold 47.5 million units. That’s lower than the 48.8 million analysts were expecting.

The stock fell more than 7% in immediate reaction to the results.

This was one of the key numbers analysts had been watching today, especially since the iPhone has been delivering record breaking sales and profits in recent quarters.

The chart below gives you an idea of just how big of a revenue driver the iPhone is for Apple.

In general, Apple’s numbers beat on the top and bottom lines. Although the iPhone numbers are lower than what analysts had expected, CEO Tim Cook said the company has seen “the highest switcher rate from Android that we’ve ever measured” on its earnings call.

The term “switchers” refers to people who switch from Android to the iPhone, and analysts will be eagerly waiting to hear more about it. Some analysts have been worried that since the iPhone 6 has already seen such massive success, it won’t have any room to grow moving forward. Switchers, however, provide another metric by which to measure the iPhone’s success.

This comes after the iPhone smashed sales expectations during the first two quarters of 2015.

In Apple’s previous earnings report released in April, the company announced that it had sold 61.17 million iPhones surpassing analyst expectations of 58.1 million.

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