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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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Apple disappoints
By Tony Swash on 1/24/2013 6:05:29 AM , Rating: -1
Apple's earnings for the final quarter of 2012 means that that Apple's last year was “disappointingly” the largest corporate earnings year in human history by a tidy margin, causing many investors to panic.

RE: Apple disappoints
By retrospooty on 1/24/2013 7:22:02 AM , Rating: 2
Wow. 4 separate threads you started in this one article. You must really be upset to put your spin engine into overdrive like this.

Meanwhile back on Earth, Apple is fine. THey made plenty money are are insanely profitable. The only difference is the growth curve is over. The competition has batter products out and smart buyers are starting to relize that.

There is more than plenty of time for Apple to go back and innovate and come out with better phones, they just need to DO it.

RE: Apple disappoints
By Dorkyman on 1/24/2013 2:47:08 PM , Rating: 2
"largest in human history..."

Bullpucky. Why not take off the rainbow glasses for a minute and think about what you said. Consider that one dollar today is worth far less than one dollar a hundred years ago.

That's right, there's something called "inflation." Comparing historical numbers without considering inflation is a worthless exercise.

Top of my head, I'd say the Dutch East India company from a couple of centuries ago was BY FAR the most powerful, most profitable company (in inflation-adjusted currency) than any company today. Probably by at least one order of magnitude.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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