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Despite record earnings and iPhone sales that broadly surpassed analyst efforts, optimism about Apple's quarterly report was dampered by poorer-than-expected iPad sales.  (Source: Tablet Tutor)
IPad sales showed some signs of weakness, though

Another quarter has passed and Apple has yet again blown away analyst earnings predictions.  You'd think that the tired Wall Street gurus would have learned by now.

Leading the way was an incredible 14.1 million iPhones shipped.  Analysts predicted that Apple, beleaguered by fierce competition from Google's Android army and fallout from the iPhone 4's faulty antenna, would only ship 11 million iPhones during the quarter.  As usual, Apple's customers unquestioning loyalty and willingness to overlook the company's quality slip-ups proved a valuable asset.

Macs sales also looked promising, with 3.89 million units shipped, versus an analyst prediction of 3.7 million units.  The strong iPhone and Mac sales propelled quarterly revenue soaring to $20.34B USD (versus a consensus estimate of $18.9B USD).  Similarly, profits were up to $4.31B USD, handsomely surpassing estimates.

Apple's earnings did showcase some troublesome signs, though.  Particularly worrisome for Apple, its brand-new iPad. I twas forecast to move 4.7 million units, but only moved 4.19 million units, a sign of slowing sales.  And sales of iPods came in a 9.05 million units, falling short of the predicted 10 million units.

Its prediction of $4.80 (USD) earnings per share for its quarter in December also fell short of the bullish analyst consensus of $5.04.

These results led to an unusual trading pattern in Apple's stock after hours.  Despite reporting what seems a blowout quarter, these telltale signs of weakness sent Apple stock approximately $21/share, approximately a 6.6 percent drop.  This drop returned the stock to beneath $300, a mark that the stock just passed for the first time early this month. 

Perhaps such is the fate of an unusual company like Apple whose customers are fiercely loyal, whose actions are over scrutinized, and who continues to deliver plenty of surprises come earnings day.

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RE: Apple is doomed!
By Tony Swash on 10/18/2010 6:38:23 PM , Rating: 2
Well, I still wonder who in their right mind would switch from a nice 20"-22" big screen and wide ergonomic keyboard to some microscopic device where you should learn to touch-type with a pin, use microscope to read its retina display and... run what instead of enterprise standard MS Office? I don't get it, Tony, please explain.

I don't know - why don't you ask them.

Ask the Fortune 500 companies buying the iPads and iPhones. Maybe they are all being fooled by Apple marketing.

In the conference call today with leading financial analysts Steve Jobs had this to say:
"We haven't pushed it (the iPad) real hard in business, and it's being grabbed out of our hands," Jobs said.

"We've got a tiger by the tail here, and this is a new model of computing which we've already got tens of millions of people trained on with the iPhone, and that lends itself to lots of different aspects of life, both personal and business," he said.

On the competition, Jobs said he isn't worried. "We're not done. We're working on a lot of things for the future." He added: "We're out to win this one."

RE: Apple is doomed!
By Pirks on 10/18/2010 6:52:06 PM , Rating: 3
Maybe they are all being fooled by Apple marketing.
Or maybe they are buying them just for testing and once they realize how horrible they are ergonomically wise for business/office stuff the iFad will go away in the enterprise market.

RE: Apple is doomed!
By themaster08 on 10/19/2010 1:35:12 AM , Rating: 2
Tony still fails to realise that Apple's products are next to useless in the enterprise market.

RE: Apple is doomed!
By Pirks on 10/19/2010 9:10:09 AM , Rating: 2
Why this then?

"adoption of the iPhone in 60% to 80% of Fortune companies and 65% of Fortune 100 trying or deploying iPad"

Why are enterprises buying next to useless products? Any idea, themaster08?

RE: Apple is doomed!
By sdsdv10 on 10/19/2010 11:14:45 AM , Rating: 2
That's not my experience. Our company has a consultant who bought an iPad right after they launched. He uses it as his only traveling laptop/tablet computer. Not to imply this is universal, but he certainly doesn't find it "useless".

"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner

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