SAN FRANCISCO Apple Inc missed Wall Street expectations on sales of its flagship iPhone, as consumers held off on purchases in anticipation of a new version of the smartphone in the fall. It shares slid 5 percent.
Netflix Inc gained a net 530,000 domestic subscribers in its second quarter, after CEO Reed Hastings said its users had streamed more than 1 billion hours of movies and TV shows in June, a record for the video streaming service.
CHANNING SMITH, CO-MANAGER, CAPITAL ADVISORS GROWTH FUND
"Clearly it was a disappointment. We were pleased to see iPad numbers beat expectations, iPhone number at 26 million was well below expectations. We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S.
"So I'm not too worried at this point. Looking forward, obviously the global economy is weakening but history tells us Apple performs very well throughout any type of economic environment."
TERO KUITTINEN, ANALYST, ALEKSTRA
"European sales dipped by a very surprising 6 percent sequentially. The combination of Samsung's big roll-outs and suddenly weakening European consumer demand in June created some issues."
JOHN JACKSON, ANALYST, CCS INSIGHT
"Apple is in that rarest of all positions where the Street will punish them for anything less than an excess of success. If there's a positive spin on the iPhone story, it is one of latent demand.
"The broad consumer market is sufficiently tuned in at this point to expect something in the fall, so the shortfall is really consistent with what you would expect.
"As expected, Apple continues to defend and extend its leadership in the tablet space - a space it essentially invented and continues to own."
BRETT HARRISS, ANALYST, GABELLI & CO
"The results were largely in line, but given their comments earlier that they streamed 3 billion hours of content, the results were weak.
"They had given guidance on their last call, then they announced 3 billion hours, which was up 50 percent from 2 billion in Q4 2011. So the Street said that over the space of two quarters, they grew hours 50 percent, and so I assume they're going to beat. That didn't happen.
"Usage was up 50 percent over the space of two quarters, and their guidance was up significantly less than that. So I think the Street read that as they were going to beat in Q2.
"Also, I'd say Q3 guidance is a little weak as well. Nothing exciting in there."
ANDY HARGREAVES, ANALYST, PACIFIC CREST SECURITIES
"The subscriber growth numbers were actually in line with my expectations, but some people are trying to jump on the shares and force them down.
"The margins were fine. They are still growing and still leveraging the business."
STEVE FRANKEL, ANALYST, DOUGHERTY & CO
What is driving down shares is "fact that there's some waffling around the streaming guidance domestically for the year, and the notion that the launch of another international market in Q4 will push the company back into an operating loss."
MICHAEL CORTY, ANALYST, MORNINGSTAR
"Guidance on the subs was cautious. They talked about a wide range for third-quarter guidance, and said that if they don't get to the high end of that range, they will have a hard time meeting their full-year guidance for 7 million."