Update: Apple Earnings miss expectations, $9.32 earnings per share versus $10.37 per share; revenue is $35 billion versus the expected $37.22 billion.

With earnings season in full swing, technology sector exchange traded funds are waiting on the after hours earnings report from Apple (NasdaqGM: AAPL), the largest component holding.

The Technology Select Sector SPDR (NYSEArca: XLK), Vanguard Information Technology ETF (NYSEArca: VGK), iShares Dow Jones U.S. Technology Sector Index Fund (NYSEArca: IYW) and PowerShares QQQ (NYSEArca: QQQ) were each down about 1% Tuesday.

AAPL is the largest single component holding in market capitalization weighted tech ETFs, accounting for over 20% of the overall weighting in each of the mentioned funds. [Tech ETFs and the Apple Effect]

Analysts expect lower iPhone sales as consumers hold off purchases in anticipation of the next big iPhone upgrade, writes Jay Yarow for Business Insider. Wall Street expects 29 million units sold.

Additionally, analysts anticipate higher iPad sales, with Wall Street looking for 16 million units sold.

The average estimates put net income at $10.37 per share, a 33.1% jump from the company’s actual earnings for the same quarter year-over-year.

“No longer is Apple the company that beats every time,” Tim Lesko, portfolio manager at Granite Investment Advisors, said in a Reuters report. “I expect Apple to beat Apple’s guidance, but I don’t know whether they will beat Wall Street’s guidance.”

Tony Sacconaghi, analyst with Bernstein Research, believes in a chance Apple could miss expectations, pointing to “macroeconomic weakness in China and Europe, a product cycle lull in the iPhone, a later than expected introduction of the new iPad into China, and the late quarter introduction of new Mac notebooks.”

In other news, Apple is currently suing Samsung for $2.525 billion in damages for making a smartphone and tablet device that “work and look” like Apple products, reports Jonathan Stempel for Reuters.

Apple claims Samsung owes “substantial monetary damages” because it illegally “chose to compete by copying Apple.”

Technology Select Sector SPDR

For more information on the tech sector, visit our technology category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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