Apple Inc fell as much as 11 percent in German trading after its forecast for the back-to-school shopping season missed analysts' projections and questions resurfaced about Chief Executive Officer Steve Jobs's health.
Fourth-quarter profit will be US$1 a share as sales climb to US$7.8 billion, California-based Apple said yesterday.
That compares with analysts' average estimates of US$1.24 a share in profit and US$8.3 billion in sales in a Bloomberg News survey.
A slowing economy may make it harder for Apple to repeat its success in the quarter just ended, when it posted record sales of Macintosh computers and iPhones and better-than-expected demand for iPod media players. Back-to-school promotions and new product development will also curb profit margins, Apple said.
"The stock will be in a penalty box until you start to see the new products come out," said Chuck Jones, who helps manage US$17 billion in assets, including Apple shares, at Atlantic Trust Private Wealth Management in San Francisco. Apple fell as much as US$18.97 to the equivalent of US$147.32 in German trading yesterday.
Before yesterday, the shares had fallen 16 percent this year. The stock traded at US$149.93 in Frankfurt.
Analysts raised questions about Jobs's health during a conference call on Monday. An appearance by the CEO in San Francisco last month sparked concern by attendees and bloggers that he may be ill. Jobs, 53, had successful surgery for a form of pancreatic cancer in August 2004.
"He is the driving force behind Apple," said Michael Obuchowski, a portfolio manager at New York-based Altanes Investments LLC. "Without Steve, the stock could be easily cut in half or more."
"Steve loves Apple," Chief Financial Officer Peter Oppenheimer said on the call on Monday, responding to a question on Jobs's health.
"He has no plans to leave Apple. Steve's health is a private matter."
Third-quarter net income climbed 31 percent to US$1.07 billion, or US$1.19 a share, from a year earlier, Apple said in a statement.
Sales rose 38 percent to US$7.46 billion in the period, which ended June 28. That topped analysts' estimates of US$1.08 a share in profit and US$7.36 billion in revenue.
Apple sold a record 2.5 million Macs last quarter, wooing consumers and education buyers with models such as the ultra-slim Air notebook and the iMac desktop computer. The company also said it sold 11 million iPod media players and 717,000 iPhones.
On average, analysts were projecting sales of 10.3 million iPods, 2.2 million Macs and at least 700,000 iPhones, said Gene Munster at Piper Jaffray & Co in Minneapolis.
Apple took the crippled US economy into account when devising its latest forecast, Oppenheimer said.
