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  (Source: Reuters)
Apple still logs record profit, but sees shareholder confidence shaken by miss

The good news Apple, Inc. (AAPL) fans is that Apple is forecast to be the most profitable American company for 2012 [source].

The company's calendar Q2 2012 (fiscal Q3) results, just reported, revealed a 20 percent spike in profits on a year-to-year basis, soaring to $8.8B USD on a revenue of $35B USD, a profit of about $9.32 USD/diluted share.

The bad news is that Apple's iPhone sales slumped, moving only 26 million units versus an analyst consensus of 28.4 million units.  Analysts had already scaled back their expectations earlier in the month from 30.5 million units.

Apple's arch-rival, Android phonemaker Samsung Electronics Comp., Ltd. (KSC:005930) is believed to have sold around 50 million smartphones for the quarter.  In other words, it is out-selling Apple -- by itself -- approximately 2-to-1 in unit sales.  In fact, Samsung's flagship Galaxy S III smartphone reportedly alone moved 19 million units.  That means that Samsung's sales of just its top model are already approaching Apple's total sales.

Analysts had expected $2.2B USD more in profit (revenue of $37.2B USD).

iPhone 4S
Samsung left Apple's iPhone in the dust in Q2. [Image Source: The Tech Journal]

The remaining good news for Apple is that it moved 17 million iPads, versus the analyst expectation of 15.4 million.

Mac sales fell slightly short of the expectation -- 4 million units versus the consensus of 4.3 million.  iPods -- largely marketed today as "kiddie iPhones" -- settled in at 6.8 million units, just above the 6.6 million unit consensus.

The good news regarding iPods and iPads was not enough to convince investors to overlook the profits and iPhone sales miss.  Stock was down $27 USD in after-hours trading and is expected to open lower tomorrow.

The sixth generation iPhone is expected to follow a pretty straight-forward formula -- larger HD screen, LTE, and faster processor.  The iPhone's current screen, processor, and modem are quite dated compared to those found in the Galaxy S III International Edition [source].  The iPhone does manage a draw on battery life, though, besting its Android rival in web-browsing life, but getting beat in talk time [source].

But the phone was a no-show in June, indicating Apple likely would continue to release handsets in October, following the slipped iPhone 4S launch.  Some analysts had hoped Apple would "catch up" with an accelerated sixth generation launch, returning to June product announcements and late June/early July product launches.

There's background noise to the investor fear as well -- some worry that the death of iconic CEO and visionary Steven P. Jobs may make Apple unable to stay ahead of the curve.  Indeed, Apple remains untested, in a sense, in that it has not released a major new product line since the death of Mr. Jobs.

Apple is relatively desperate to try to stop Samsung in court, seemingly unable to stop Samsung on the market.  It has seen some success scoring sales bans on the Samsung Nexus smartphone and Samsung Galaxy Tab 10.1 tablet.  But it failed to secure its most hoped for ban -- a kill shot on the Galaxy S III.

Apple attorney Josh Krevitt sums up his company's plight, remarking, "Samsung is always one step ahead, launching another product and another product."

Indeed, Apple looked a step behind in Q2.

Sources: Apple, Bloomberg, Reuters



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RE: Apple are doomed!
By momorere on 7/24/2012 8:52:15 PM , Rating: 5
I'm going to start posting random "quotes" from random people/articles and passing them off as facts like you. Just because an article or person says something, don't mean it's true, this is the internet afterall. We all know it's a VERY tough pill for you to swallow about Apple getting surpassed in both quality and quantity. All "empires" come tumbling down at some point. We are only seeing the beginning of the end of your beloved Apple.


RE: Apple are doomed!
By Tony Swash on 7/25/12, Rating: -1
RE: Apple are doomed!
By karlostomy on 7/25/2012 6:36:47 AM , Rating: 2
Apple are doomed?

As far as I can see, no one else is saying that except you, Tony.
Let go of the melodrama and histrionics, already.

This quarter Apple got bested, same as you have been.
Get used to it.
No need to get all huffy about it, though.


RE: Apple are doomed!
By Gondor on 7/25/2012 6:43:48 AM , Rating: 2
Indeed, Apple is doomed, but it's all thanks to their own stupidity.

However, they are still before the point of no return and can use that heap of stashed cash to salvage the company, before it gets demolished by litigation. Then again shareholders might get greedy and drain those cash reserves instead before the ship sinks ... who knows.


RE: Apple are doomed!
By Cheesew1z69 on 7/25/2012 8:55:24 AM , Rating: 1
You keep comparing Windows to Mac sales when they aren't even in the same category. But of course, this is you, you like to make shit up to further your agenda.

Comparing software sales to hardware sales = moronic

Apple TV and XBOX, same, not in the same category but hey, whatever floats your boat to make yourself feel better.


RE: Apple are doomed!
By spread on 7/25/2012 9:12:17 AM , Rating: 2
The Apple TV is the most popular computer in North Korea.

Tim Cook is actually German, born in Frankfurt.

For every iPhone sold, 0.5% of the profits go to fund homoeopathic research.


"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates














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