Apple Earnings Worry Investors; Stock Falls 10 Percent
January 23, 2013 7:06 PM
comment(s) - last by
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
he first quarter of 2013.
This article is over a month old, voting and posting comments is disabled
RE: So another strong quarter of growth another set of record results
1/24/2013 4:20:23 AM
He'll also pull out SD cards and replaceable batteries, things that cannot fit in small chassis, as other "high end" features it is missing.
You know, "high end" features you can get on giveaway trash featurephones at Boost Mobile. ;)
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
IPad Market Share Bested by Nexus 7 in Japan
January 17, 2013, 11:54 AM
Apple Cuts iPhone Screen, Component Orders for Q1 2013 by 50 Percent
January 14, 2013, 6:30 AM
Google’s Project Ara Modular "LEGO" Smartphone Shown Booting Up on Video
October 29, 2014, 5:28 PM
After Touting Security, Privacy Controls, MCX/CurrentC Hack Exposes Customer Email Addresses
October 29, 2014, 3:08 PM
HP Reveals Sprout PC with Built in Projector, 20" Touch Sensitive Mat for Input
October 29, 2014, 1:13 PM
How Thin Can They Go? Oppo R5 is World’s Slimmest Smartphone
October 29, 2014, 8:33 AM
Samsung's Remote Wipe Could Let Hackers Hold Your Phone Ransom
October 28, 2014, 3:50 PM
Update: FTC Sues AT&T for Misleading Customers on “Unlimited” Data Plans
October 28, 2014, 1:41 PM
Most Popular Articles
Amid Theater Boycott Netflix Defiantly Plans New Movies, Plus 3 TV Shows for 2015
October 24, 2014, 7:30 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
1 Million Credit Card Activated on Apple Pay Within 72 Hours, Walmart CEO Hopes Visa "Suffers"
October 28, 2014, 8:17 AM
Microsoft's Figures Show Desktop Users Flocking to Windows 10 Preview
October 27, 2014, 11:04 AM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information