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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 tayb on 1/23/2013 9:01:11 PM , Rating: 2
quote:
There is one overriding factor that everyone seems to overlook: nobody can compete with Android as long as Google continues to give it away for free (along with a host of other free services).


Rubbish.

First off Android really isn't "free." Each and every Android phone producer writes a check for every Android handset they sell. That's not free.

Secondly, the price of an OS in the smartphone market is beyond irrelevant. All smartphones are the same price at launch and the price is based on the hardware not the software. Neither Apple, RIM, nor Google technically "sell" an OS. In fact the only player out there selling an OS is Microsoft. Are WP8 devices more expensive than Android devices because of that? Nope.

Third, nobody can compete? Apple is competing pretty damn well and if Microsoft didn't have an absolutely moronic mobile strategy they would be competing just fine too. This market is in its infant stage right now. No one has won.


By Mitch101 on 1/23/2013 9:30:05 PM , Rating: 2
A lot of people are going to be quite surprised by how well the Windows Phone especially the Nokia 920/Windows Phone is doing globally despite there being two other established eco systems from Apple and Google.


"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive














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