Apple shares tumble after lackluster earnings

Apple shares were seen tumbling in early trading on Tuesday, hurt by a lackluster first-quarter performance and a cautious second-quarter revenue outlook.

The shares dropped more than 7 per cent, hovering slightly above $511. The iPhone maker initially lost nearly $40 billion in market value.

On Monday, Apple Inc said it sold more iPhones and iPads in the first quarter than in any prior quarter. Investors, however, were expecting even bigger things from the Cupertino, California-based company.

Apple also announced a second-quarter revenue forecast of $43 billion, which was below Wall Street's estimate of $46.13 billion.

The scrip has started losing some ground in the past year due to concerns about slowing growth and growing competition.