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  (Source: Goodfon)
Apple's profit is flat due to higher manufacturing costs

While Apple managed to surpass analysts' profit forecasts for the fiscal 2013 first quarter, the company's stock took a tumble as investors worry over Apple's ability to maintain steady growth with new products.

Apple reported a revenue of $54.5 billion for the quarter ended December 29, 2012, compared to $46.33 billion in the year-ago quarter. The tech giant just missed analyst expectations of $54.73 billion.

Apple also earned a net profit of $13.1 billion ($13.81 a share) compared to $13.1 billion ($13.87 a share) a year ago. Profit clearly remained pretty flat, but it exceeded analysts' expectations of $13.44 a share.

The iDevice maker also noted that it had record iPhone sales for the quarter at 47.8 million (compared to 37 million in the year-ago quarter). It also had an uptick in iPad sales, from 15.4 million in the year ago quarter to 22.9 million in the most recent quarter.

“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” said Tim Cook, Apple’s CEO. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

While Apple did okay for the quarter, investors are concerned with the company's flat profit due to higher manufacturing costs and also worry whether Apple can keep up its momentum with product popularity. Many new devices are hitting the market at lower prices and offer newer, better features. For instance, the iPad's market share was bested by Google's Nexus 7 tablet in Japan mainly due to cost differences.

Apple's stock has lost nearly 25 percent of its value since September 2012 ($170 billion in market value).

In after-hours trading today, Apple's stock fell over 10 percent.

Looking forward to fiscal 2013 second quarter, Apple expects a revenue of between $41 billion and $43 billion.

Earlier this month, it was reported that Apple had cut iPhone screen and component orders by 50 percent for the first quarter of 2013.

Source: Apple

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By mugiebahar on 1/23/2013 8:33:28 PM , Rating: 1
I was alway an underdog guy (hell I still want BB10 to make it) but having owned every single device. WebOS (Palm Pre2, and Touchpad) / Blackberry (Bold and Playbook) / Andriod (nexus original / Archos 7" tablet and now I have the S3) and I have the IOS ( iPhone 4S and iPad 3) my newest phone is the S3. While technology Wise its the best and the screen size is hands down great, I hate to admit that I love IOS the best. Not because I think it's the greatest and nothing compares, but rather its just easy to have a single system and everything is interconnected. Music, movies, reading, contacts, games and learning apps for my daughter. I can buy a book for her while im @ work and have it download on her iPad mini without having to be there. Being a business person that easy of use is more important then technology being front and centre. While I will buy devices always as I have, I must say that people arguments for iOS to change drastically is wrong. What makes iOS great is the way it is. I'm up for good improvements but not radical new designs. Also I will admit they aren't the leader of the PAC when technology is in the equation, but they don't have to be because they maximize what they have.

By xti on 1/23/2013 9:25:04 PM , Rating: 5
do none of your phones let you make paragraphs!?!?

By seamonkey79 on 1/23/2013 9:48:48 PM , Rating: 2
Never mind that what you listed, like having all your media linked together without having to physically be somewhere and having a book downloaded, are platform independent if you use the right tools, it hardly makes iOS anything special. I bought a Nook Color, rooted, installed CM7, and buy books and music from Amazon, books from B&N, music from Microsoft, watch movies on Netflix, etc. I moved to a new device, to another new device, and now I'm on the third, fourth or fifth (I can't keep track) device and everything is still there just like it was for the Nook. Amazon let's me control where they send the book from the website as well as from each device.

The interconnection being limited to an iOS device would be tied to buying everything through iTunes, not the devices themselves.

By jimbojimbo on 1/23/2013 10:33:23 PM , Rating: 2
You can do the same thing with the Kindle app on any of the platforms. What's so special again?

By Xplorer4x4 on 1/24/2013 12:33:18 AM , Rating: 2
rather its just easy to have a single system and everything is interconnected. Music, movies, reading, contacts, games and learning apps for my daughter.

How are things not connected in Android?

I can buy a book for her while im @ work and have it download on her iPad mini without having to be there.

I can do the same thing with my girlfriends kindle through the play store website. So again how does this make iOS your preference?

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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