Investors are bracing for a rough day in tech on Tuesday after Apple shares sold off sharply in extended trade while VMWare disappointed investors.
Not since July 21, 2008 has Apple stock traded lower on the back of earnings.
What must you know?
Shares of Apple sank in the after market, selling off as much as 6% after Apple gave an earnings outlook for the current quarter that missed analysts' expectations. (Of course it’s worth noting that Apple often sandbags and guides to the conservative side.)
On a positive note, Apple did report a huge profit increase that blew past expectations. Sales, however, were mixed.
Sales of Apple's popular iPhone jumped 91 percent to 14.1 million units in the quarter. The company sold 3.89 million Macs, an increase of 27 percent.
But on a bearish note, Apple only sold 9.05 million iPods, a decline of 11 percent year over year. And the company missed estimates with 4.19 million iPads.
By the numbers the company said it earned $4.31 billion, or $4.64 a share, in its fiscal fourth quarter, against $1.82 a share last year.
Revenue for the quarter was reported at $20.34 billion, versus $9.87 billion last year.
Equity analysts who follow Apple expected the company to turn in a profit of $4.08 a share on sales of $18.90 billion, according to Thomson Reuters.
The company forecast current-quarter earnings of $4.80 a share on revenue of $23 billion. The outlook exceeds Thomson Reuters' estimate on the revenue side, but falls short on the profit side by 26 cents.