Apple's Earnings Disappoint Wall Street

Shares in Apple dropped more than 6 percent, after the company said quarterly profits rose only 54 percent over last year. Investors are used to Apple blowing past expectations.

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ARI SHAPIRO, HOST:

NPR's business news starts with Wall Street taking a bite out of Apple. Apple shares dropped more than six percent, after the company said quarterly profits rose only 54 percent over last year. Investors are used to Apple blowing past analysts' expectations, and yesterday's numbers came in below predictions, so they were a disappointment.

Apple CEO Tim Cook said many people held off buying iPhones to wait for the newer version. Sales of those were not included in the earnings report. Some analysts are still confident, but Apple faces more competition, especially from Samsung. Yesterday the Korean electronics maker unveiled its newest smartphone. It runs on the latest version of Google's Android operating system and it has features like facial recognition for unlocking the phone.

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