Apple Inc.(NASDAQ:AAPL)’s profit warning for the holiday quarter has not gone down too well with investors and analysts.
The stock fell below $600 on Friday, though it recouped losses to close at $604, losing $5.54m off the day's low of $591.
On Thursday, after announcing the results for its fiscal fourth quarter the iPhone maker had said that the expenses from launching so many new products would cut into its profit margins.
It expects good sales from all the new products it has launched in the current quarter and last quarter, but the costs incurred in making the new products have been high, it said.
Apple launched the iPhone 5 a month ago and announced two new iPads and three new Macs this week. In addition, it's shipping new iPods.
The Cupertino company has the habit of issuing conservative estimates and then performing better than expected, but this time analysts are taking the profit warning seriously.
Several analysts have already cut the earnings estimates for the company for the current quarter and the fiscal year that started in October.
Stuart Jeffrey noted that Apple's profit margins should be back to normal in the quarter that starts in April, but that will be too late to fully make up for the earnings hit in the holiday quarter. He cut his earnings estimate for the year by 10 percent and his price target on the shares from $710 to $660.
Apple's shares have depreciated about $100 from the highs of $705.07, it hit on September 21, when its iPhone 5 went on sales in stores around the world.