Apple profits miss analyst expectations

iPads sold in big numbers, but the iPhone disappointed
Darren Allan

July 25, 2012
iPhone 4S

Apple is the wonder-company of the tech world, and can do no wrong. Generally speaking, anyway.

Which is exactly why the Cupertino-based outfit can post some very impressive figures by most company’s standards – up 22 per cent in terms of revenue, year-on-year – yet analysts can be disappointed. Simply because the analysts forecasted that Apple would do better.

For the quarter ending June 30th, Apple made $35 billion in revenue with a net profit of $8.8 billion, compared to $28.6 billion and $7.3 billion respectively a year ago.

But that wasn’t enough for the analysts, and Apple came in under expectations for only the third time in a decade. Normally, Apple exceeds its expected earnings by some margin, so this is a slight worry for Tim Cook and co.

In terms of hardware units shifted, the headline news was the 17 million iPads which were sold in the quarter, almost double that of the previous year’s number. iPods were down again, as expected, shifting 10 per cent less at 6.8 million units, whereas Mac computers remained broadly flat at 4 million.

However, it was the iPhone where growth wasn’t as high as expected, with 26 million units sold, a 28 per cent increase. To put that in perspective, during the previous quarter ended March 31st, 35 million iPhones were sold, a figure which was up 88 per cent year-on-year.

Of course, the reason for this slight bump in the road is doubtless the fact that people are holding off buying the iPhone 4S, with the iPhone 5 on the horizon. The next-gen Apple smartphone is due to come out this October.

That means the next quarter will probably be pretty subdued, most likely, given that the iPhone 5 still won’t be out. Also, the new iPad won’t be as fresh a proposition (it just came out before this current quarter).

What also contributed to the less-than-expected coinage pouring into the coffers was the fact that average selling prices for Apple’s products declined, particularly in the case of the iPad. In other words, many folks were plumping for the cheaper iPad 2, which was kept on after the new iPad’s launch as a more budget-oriented option.

Apple expects to make $34 billion in revenue next quarter, CFO Peter Oppenheimer noted.






 

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