How Investors Are Reacting to Apple's 4th-Qtr Earnings

Apple reported $46.9 billion in revenue, aligning with analyst estimates, and sold 45.5 million iPhones in the fiscal fourth quarter. Despite initial stock gains, concerns over lower gross margins and high production costs led to a downturn. The company remains optimistic about the holiday quarter, but faces challenges in China, with sales down 30% year-over-year. Inventory management and competition from local vendors like Huawei are key issues. Margin pressures are attributed to costs in the Chinese market and the relaunch of the Mac line.

What was the initial market reaction to Apple's fiscal fourth quarter results?

• The stock price fell immediately.

• The stock price rose initially.

• The stock price fluctuated wildly.

• There was no change in the stock price.

What is a significant challenge Apple faces in the Chinese market?

• High import tariffs

• Limited distribution channels

• Economic weakness and strong local competitors

• Lack of brand recognition

What issue did Apple face with the iPhone 6s that affected their approach to the iPhone 7?

• High production costs of the iPhone 6s

• Underproduction of the iPhone 6s

• Low demand for the iPhone 6s

• Overproduction of the iPhone 6s

What percentage of Apple's revenue in the fiscal fourth quarter came from international sales?

• 50%

• 62%

• 80%

• 70%

What additional costs might Apple face due to the relaunch of the Mac line?

• Ramp costs due to later relaunch

• Increased shipping costs

• Higher production costs

• Increased marketing expenses