Apple earnings sag in latest quarter
NEW YORK (AP) - Apple is getting less for its products. That's a disappointment for investors who thought the company would keep boosting profits and revenues at its previous breakneck pace.
On Tuesday Apple Inc. revealed that its growth slowed in the most recent quarter. In both revenue and net income, the company posted the smallest increases in years, and failed to meet analyst expectations.
It wasn't so much the volume of sales: Apple sold 17 million iPads in April to June period, beating expectations, and 26 million iPhones, at the low end of expectations.
But Apple's average selling prices for both gadgets declined to levels last seen in 2010 for the iPhone and the lowest levels ever in the case of the iPad.
Apple introduced a new iPad in March, but kept the older model in stores while cutting its price.
The average selling prices of Macs also fell.
Net income in Apple's fiscal third quarter was $8.8 billion, or $9.32 per share. That was up 21 percent from $7.3 billion, or $7.79 per share, a year ago.
Analysts polled by FactSet were expecting earnings of $10.37 per share.
Revenue at the Cupertino, Calif., company was $35 billion, up 23 percent. Analysts were expecting $37.5 billion.
Apple shares fell $29.82, or 5 percent, to $571.10 in after-hours trading, after the release of the results.
Apple forecast earnings of $7.65 per share for the current quarter, well below the average analyst forecast at $10.26. Normally, Apple's forecasts are ignored, because the company routinely exceeds them. But for the just-ended quarter, Apple's cautious forecasts were more accurate than those of analysts.
Apple's forecast points to year-over-year profit growth of just 9 percent.
For revenue, Apple forecast $34 billion, while analysts have been expecting $38.1 billion.
Apple last missed expectations when it reported results for the quarter that ended in September last year. That was due to the iPhone 4S's launch being pushed from that quarter to the following one.
Apple's chief financial officer, Peter Oppenheimer, said the new version of its operating system for Macs, Mountain Lion, will go on sale Wednesday.
On Tuesday Apple Inc. revealed that its growth slowed in the most recent quarter. In both revenue and net income, the company posted the smallest increases in years, and failed to meet analyst expectations.
It wasn't so much the volume of sales: Apple sold 17 million iPads in April to June period, beating expectations, and 26 million iPhones, at the low end of expectations.
But Apple's average selling prices for both gadgets declined to levels last seen in 2010 for the iPhone and the lowest levels ever in the case of the iPad.
Apple introduced a new iPad in March, but kept the older model in stores while cutting its price.
The average selling prices of Macs also fell.
Net income in Apple's fiscal third quarter was $8.8 billion, or $9.32 per share. That was up 21 percent from $7.3 billion, or $7.79 per share, a year ago.
Analysts polled by FactSet were expecting earnings of $10.37 per share.
Revenue at the Cupertino, Calif., company was $35 billion, up 23 percent. Analysts were expecting $37.5 billion.
Apple shares fell $29.82, or 5 percent, to $571.10 in after-hours trading, after the release of the results.
Apple forecast earnings of $7.65 per share for the current quarter, well below the average analyst forecast at $10.26. Normally, Apple's forecasts are ignored, because the company routinely exceeds them. But for the just-ended quarter, Apple's cautious forecasts were more accurate than those of analysts.
Apple's forecast points to year-over-year profit growth of just 9 percent.
For revenue, Apple forecast $34 billion, while analysts have been expecting $38.1 billion.
Apple last missed expectations when it reported results for the quarter that ended in September last year. That was due to the iPhone 4S's launch being pushed from that quarter to the following one.
Apple's chief financial officer, Peter Oppenheimer, said the new version of its operating system for Macs, Mountain Lion, will go on sale Wednesday.
So much drama over nothing, people are just waiting for the next iPhone,TV, ETC.........
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Use this time to get your foot in the door...After Hours now down $33...
Wasn't it just yesterday that the times reported how Apple keeps billions in unreported profit in other countries? I think they referred to it as phantom taxes? If they took the money out of the country of orgin that they made the profit they would have to pay US taxes on it. That being said maybe there profits aren't as low as they are reporting?
http://seattletimes.nwsource.com/html/businesstechnology/2018752954_apustecapplehiddenprofits.html
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* Their profits. I don't like that you can't make quick edits on the new comment system.
Apple has been here before. Interesting to see how they revive themselves this time.
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But, I put more blame on Wall Street and their arrogant analysts that downplay any stock because they did not grow to the height that the same analysts said they should. Most of these analysts could not predict an earthquake as the building fall around them but for some reason the financial world bows down to them? I have never understood how these nitwits have got such a following. It is such a game that is played. Apple is making a huge amount of money and employing thousands of people in the US but because they did not meet their numbers because of a bad economy their value does down. I would really like to see these financial peoples toys get taken away when they are wrong about something, but instead, the US provides billions of dollars to these people so they can keep their lifestyle. What about the rest of the people who have lost trillions of dollars due to these same financial peoples mistakes?
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And, the market is pretty congested with high tech toys. What is Apple or any other company going to add so that they buying spree starts again? I know, it is the off shoring of jobs that creates these buying sprees. Take a third world country, send thousands of jobs to its low income workers to make products for US companies only so these low income workers get paid a few dollars more so they can buy these new toys. All just moving the damage around to create profit. It does not matter who gets hurt as long as the financial people keep making money.
@Beam_Me_Up Its an odd thing about capitalism that raking in huge profits isn't enough; to be truly successful, a company must reap greater profits than last period. Grow, grow, grow!
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In most ecosystems, rampant growth is a *bad* thing.
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 @Koawoodplayer Oh man, go buy those cord on Ebay or Meritline. You can usually get them for $1-2, shipping included, $3-4 at most. You can buy USB cable or any kind of cord for around that price.
 @Koawoodplayer I've gone through so many of these also. Apple usually replaces mine for free. I just make an appt with a Genius.
 @Koawoodplayer I've had the same iPhone cable for three years and don't have any issues with it. I use it at home and while traveling.
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What are you doing to the cable that is causing it to fail so quickly?
$9 per share is pretty good if you ask me.
 @northwestsurfer It's not $9 per share. The closing price today was $600.92 per share.
@123456789 from the story: Net income in Apple's fiscal third quarter was $8.8 billion, or $9.32 per share
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I didnt say stock price, I was referring to the net income yielded to investors per share