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Apple misses iPhone forecasts, stock drops over 10 percent

'Everyone at Apple has their eyes on the future,' Apple CEO Tim Cook said on an earnings conference call.

Iphone 5 germany 5Enlarge
MUNICH - Customers queue to enter the Apple Store where a giant logo is displayed in the southern German city of Munich on September 21, 2012 as the iPhone 5 goes on sale. (CHRISTOF STACHE/AFP/Getty Images)

Apple shares fell $54.98, or about 11 percent to $459.03 in after hours trading Wednesday evening, USA Today reported.

The news comes after Apple reported disappointing first-quarter earnings and missed analysts' iPhone forecasts for sales over the holidays.

The New York Times explained the market reaction: "[Apple] said its profits were flat because of higher manufacturing costs, even as revenue rose 18 percent. The results exceeded analysts’ profit forecasts and just missed their revenue estimates."

"Everyone here is laser-focused," Apple CEO Tim Cook told investors on a conference call. "Everyone at Apple has their eyes on the future."

But he added, "We aren't interested in revenue for revenue's sake."

In the conference call, Apple argued its iPhone revenue over the holiday shopping season actually increased 28 percent.

But investors are worried because Apple's "revenue guidance" for this quarter came in below expectations. Instead of $45.6 billion, Apple is projecting between $41 to $43 billion.