Apple shares tumbled Friday a day after quarterly results showing strong profits but weaker-than-anticipated iPhone sales and a disappointing outlook for the key holiday period.

Apple skidded 6.6 percent to close at $207.48. That left the valuation right at $1 trillion, after briefly slipping below the milestone it topped in August.

The firm said net profit climbed 32 percent to $14.13 billion on revenue that was up 20 percent to $62.9 billion with help from growing sales of digital content and services to users and other Apple gadgetry.

However, the market was disappointed that Apple fell short of expectations, with sales of 46.9 million iPhones and a forecast for the key holiday season that was not as robust as anticipated.

"Apple will have trouble maintaining its recent valuation bump if the market clearly sees declines in shipments," said analyst Richard Windsor on his Radio Free Mobile blog.

Other analysts said the outlook remains positive for Apple as it diversifies its revenue base with more services such as streaming music and Apple Pay, and moves toward the launch of a video service that could compete with Netflix.

"Services revenue continues to increase at pace," said Neil Saunders of the research firm GlobalData.

"We believe this represents a massive forward opportunity for Apple and, as such, welcome the news that the company is looking into streaming video services."

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Apple delivers strong profits; Spotify hits flat note
San Francisco (AFP) Nov 2, 2018
Apple on Thursday delivered blockbuster earnings, but saw shares punished after a disappointing holiday season forecast and word that it will stop reporting how many iPhones it sells. The California-based technology giant makes most of its money from iPhones, and sales numbers have been seen as a bellwether of the company's fortunes. Apple shares dove 6.5 percent to $207.78 in after-market trades following the release of earnings figures for a record-setting September quarter. The firm said ... read more