Earnings Are Rising, But Why Are Apple Shares Falling?

<p>&nbsp;Apple shares slipped lower despite its earnings report showing a better-than-expected increase in the third quarter.</p><p><br /></p><p>This was undermined by the company's forecast that sales may decline for the fourth consecutive quarter in the coming quarter.</p><p><br /></p><p>Apple said sales for the fiscal third quarter ended July 1 fell 1.4% to $81.8 billion and earnings per share rose 5% to $1.26, beating Refinitiv's expectations for growth of $81.69 billion and $1.19 per share.</p><p><br /></p><p><br /></p><p>The improved figure was supported by strength in service sales which increased 8% on an annual basis.</p><p><br /></p><p>However, there was a weaker decline in its flagship device, the iPhone which fell 2% to $39.67 billion from the $39.91 billion expected.</p><p><br /></p><p>Even so, the weakness was offset by strong sales in the service segment containing Apple TV+ and by sales in China that increased 8% year-over-year.</p><p><br /></p><p>Apple shares fell about 2% after Chief Financial Officer (CFO) Luca Maestri said the company expected the performance of its fiscal fourth quarter ending in September to be the same as the decline it reported on Thursday.</p>