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Why Apple Stock Tanked Nearly 2% after Today’s Event

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Apple services announcements

Earlier today, Apple (AAPL) expanded its services segment offerings with Apple TV+, Apple News+, Apple Card, and Apple Arcade. In the quarter ended December 2018, Apple’s product segment sales fell 7.2% year-over-year to $73.43 billion while its services segment sales jumped 19.1% year-over-year to $10.87 billion. The contribution of its services segment to its total sales rose to 12.9% in the December 2018 quarter, compared to 10.3% in the December 2017 quarter.

Apple News+, Apple Card, and Apple Arcade

The company’s news subscription service, Apple News+, will give users access to over 300 magazines and many popular newspapers, including the Wall Street Journal. Users can share their News+ subscription with their family members without any additional charges. Apple users can take advantage of a one-month free trial to Apple News+, and they’ll be charged $9.99 per month after a month.

Apple also announced its credit card, called Apple Card, in partnership with Goldman Sachs and MasterCard. Apple Card users will receive 2% daily cash back if they use it with Apple Pay and 3% daily cashback on payments made at Apple stores. Apple Card will be available on iPhones this summer in the United States with no fee, and the company claimed that its card offers lower interest rates than other bank cards.

Apple’s game subscription services, Apple Arcade, will be available online as well as offline across Apple devices, including iPhones, iPads, Mac, and Apple TV. The company has yet to decide on pricing its game subscription services.

Apple stock fell

As of March 22, AAPL made up about 10.17% and 3.68% of the Invesco QQQ Trust (QQQ) and the SPDR S&P 500 ETF’s (SPY) total portfolios, respectively.

Apple’s announcement today didn’t seem to impress investors. As of 3:15 PM ET, it was trading with 1.9% losses against no notable change in the S&P 500 Index and the NASDAQ Composite Index from their respective previous closing prices.

Apple’s event today didn’t seem to be a big surprise compared to investors’ sky-high expectations, which could be the main reason why the stock fell after the announcements.

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