Apple weighs on Wall Street following earnings report

Stock in the tech-giant lost 7.09% to $96.97 after reporting the first drop in quarterly sales volumes of its iconic iPhone´s since 2007, which fell 16% to 51.2m units.

As a result, the company´s quarterly revenues declined 13% to $50.56bn while its profits dropped 22% to $10.5bn.

That was mainly the result of slowing upgrades for its flagship iPhone 6S, which were tracking significantly below those for the 6 model.

Chief Tim Cook therefore decided to up the ante on the pace of de-stocking in its distribution channels by $1.2bn to $2.0bn, which in turn contributed to a short-fall in the company´s revenues guidance for the June quarter.

Analysts at Morgan Stanley cut their target price on the shares from $135 to $120 following the news, albeit while reiterating their 'overweight' stance.

"Given the mixed macroeconomic commentary and the slower upgrade cycle highlighted by both Apple and US carriers, we assume little improvement in the next two quarters.

"While shares may take a pause near-term, we like the set-up of a lower bar heading into easier compares and product cycles in C2H16," the team of analysts led by Katy L.Huberty said in a research note sent to clients following the latest numbers from the company.

As of 15:26 BST shares in Apple were 7.04% lower to $96.98.