Reuters Business Video Report - Apple stock slid more than 10 percent in after hours trading Wednesday - in large part because revenue for its first quarter fell short of estimates- for the third straight quarter.
iPhone sales set a new record at 47.8 million- significantly higher than the close to 37 million sold in the year ago quarter- but still short of estimates.
iPad sales came in at 22.9 million compared to 15.4 million in the year ago quarter.
"Apple is considered the leader in tablets and phones for innovation. But the reality is: are they really the leader anymore or are they the standard bearer? They are the people you look at and go - well that's a really good product. But Samsung has made some really good products. Who is creating the true innovation? And everyone looks to Apple to do that so that's what we have to see in 2013. Something fresh."
The cost to ramp up new products also took a bite out of Apple's results.
Reuters BreakingViews Rob Cyran:
ROB CYRAN, COLUMNIST, REUTERS BREAKING VIEWS:
"Apple has had to introduce a lot of new products over the past year. The problem is new products aren't as profitable as the old ones. However Apple is still doing pretty well in one area. Cash is up strongly. Cash is now about 30 percent of Apple's market cap. At some point that is going to provide a cushion for the stock. "
No cushion for now- Apple stock- is down close to 30 percent from its peak of $705 soon after the iPhone 5 was released in September.
Ryan Detrick, Senior Technical Strategist at Schaeffer's Investment Research warns investors not to try to catch a falling knife.
RYAN DETRICK, SENIOR TECHNICAL STRATEGIST, SCHAEFFER'S INVESTMENT RESEARCH:
"The ultimate bottom still might not be here. Things bottom at despair and to us we just aren't seeing enough despair on Apple. It isn't the end of the world, but again there is probably some better opportunities out there."
But Ulanoff says to watch the product pipeline, because Apple has a history of comebacks.
"This is a company that rose literally from the ashes in the late 90's and they are in a really great spot. They have tons of cash, tons of cash, a lot of money to invest in R&D and when they come out with something that is completely new it will be really good."
But for all its troubles- a reminder- Apple is still the world's most valuable company.