LINDA WERTHEIMER, HOST:
Also disappointing, Apple's earnings report yesterday. Wall Street was underwhelmed.
And as NPR's Steve Henn reports, Apple's shares fell more than 5 percent.
STEVE HENN, BYLINE: Apple brought in $35 billion in revenue, but the company still managed to disappoint Wall Street analysts, like Walter Piecyk at BTIG.
WALTER PIECYK: Apple missed on iPhones - they only sold 26 million. The street was expecting much more.
HENN: Most of Apples' profits come from the iPhone, and Apple CEO Tim Cook told investors widespread rumors Apple will release a new phone in the fall may have depressed sales.
TIM COOK: You know, I'm glad that people want the next thing. I'm super happy about it.
HENN: But that wasn't Apple's only problem. Cook said the sluggish global economy, especially in Europe took a toll, too.
COOK: France and Greece and Italy were particularly poor.
CAROLINA MILANESI: Yeah. I think in generally consumers in Europe are getting pickier.
HENN: Carolina Milanesi is a vice president at Gartner Research.
MILANESI: They are more demanding; they are trying to get the best for their money.
HENN: To make things worse, Walter Piecyk says the big telecoms companies all over the worlds are tired of subsidizing customers who want the newest iPhone.
PIECYK: The change in here is that guys like AT&T, when you go back to them and say give me another subsidized phone they're saying, no - wait another 10 months or pay us $600.
HENN: And Piecyk says, in this economy that could take a big bite out of Apple's future sales.
Steve Henn, NPR News, Silicon Valley. Transcript provided by NPR, Copyright National Public Radio.