Apple sheds $70 billion in value after a fall in iPhone sales

• Apple shares fell over 2% on Friday.
• It posted a so-so earnings report that showed iPhone and iPad sales falling.

Apple is on track to erase nearly $70 billion in value after it said iPhone sales fell in the three months to July 1.

The Big Tech giant's shares were down over 2% shortly after the opening bell, as investors reacted to a so-so earnings report released after Thursday.

Apple posted a rise in both net profits and earnings per share, while its revenue fell slightly but still came in above Wall Street's expectations, per data from Refinitiv.

However, it also revealed that hardware sales dipped in the quarter. Sales of iPhone, which account for nearly half of Apple revenues, slipped more than 2%, while iPad sales were down by a fifth.

The weak data rattled shareholders and could have wider implications for markets by suggesting a potential slowdown in Americans' spending levels, according to analysts.

"Apple beat expectations overall, but a 2% fall in iPhone sales has spooked investors and caused a sharp sell-off," said Hargreaves Lansdown lead equity analyst Sophie Lund-Yates.

"The wider ramifications for consumer sentiment has sent a wobble through markets, at a time when nerves are high waiting for the monthly jobs report," she added, referring to July's Non-Farm Payrolls data due to be released at 8.30 a.m. ET.

Apple's total market capitalization will fall $70 billion if Friday's losses hold up until the opening bell, per Insider's calculations.

The Cupertino-based company's shares have had a stellar 2023, surging almost 53% thanks to an AI-fueled tech rally and investors wanting to hold safer mega-cap stocks during times of economic uncertainty.