APPLE Q3: ANOTHER RECORD, ANOTHER STOCK SLIDE

Apple sold 47.5m iPhones in the three months ended June 27, a 35% year-over-year jump in what the Wall Street Journal notes is a traditionally weaker quarter for iPhones as consumers hold off on purchasing until the fall, when the new model typically appears.

As a result of this sales boom, plus a doubling of sales in China, the company once again enjoyed record earnings as quarterly profit surged 38%. Nonetheless—and tell us if you’ve seen this movie before—Apple shares slid 6.7% to $122 in after-hours trading because the company’s revenue outlook for the current quarter fell short of Wall Street expectations.

The iPhone 6 (bigger than before) and 6 Plus (bigger still) has not only spurred tons of existing users to upgrade, it’s also causing a greater number of Android users to switch than ever before, Apple CEO Tim Cook indicated in an interview with the WSJ. “The gap is widening between us and our competitors,” he said.

Cook also claimed that Apple Watch sales beat the company’s own internal projection, although he didn't provide those estimates.

Apple’s profit in the company’s fiscal Q3 was $10.7 billion, up from $7.74 billion a year earlier, while revenue rose 33% to $49.61 billion. Sales of iPhones rose 59% to $31.37 billion.

Cook addressed Apple Music—which launched just after the quarter closed—in the earnings call, saying he was “thrilled by the response... Millions and millions of customers are already experiencing the new service using the three-month trial period, and the numbers are growing substantially every day.”