What doesn't make sense to you? The markets in general are down to start with, the earnings report moreso than ever illustrated that they are the iPhone company and there will be a lot of risk to the stock if they should miss on iPhone sales, the stock has already doubled in a year, many people are taking profits. Makes lots of sense to me.
They need a new, large category (not watch), with lots of growth potential. Otherwise they will be continuing their transition from Growth stock to Stalwart stock. It's the cycle of business life.
What? Apple has been an "iPhone company" for quite a while now. If that was really spooking Wall Street how is it that the stock closed yesterday near an all time high?
Facts are they beat on the top and bottom line, beat on gross margins and EPS, and provided strong guidance for next quarter. Tim Cook said only 20% of install base has upgraded to the iPhone 6 and said they're seeing more switchers than ever before. In what universe does that equate to the stock being down the next day? Google missed on the top and bottom line and was up 3%. Where is their growth potential?