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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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RE: Flat
By EasyC on 1/24/2013 7:34:03 AM , Rating: 2
I could mention things like the iPhone 5 having fastest hardware, best displays, best battery life, best apps, but it doesn't matter.

You could, but you'd be wrong...

RE: Flat
By retrospooty on 1/24/2013 7:46:08 AM , Rating: 2
Never in his mind... Never. LOL.

Ill give him fastest GPU and best apps by a small margin. It's all the other things its missing entirely that I was referring to.

RE: Flat
By maugrimtr on 1/24/2013 11:24:35 AM , Rating: 2
He lost me at the lightening cable. It's non-standard, expensive to buy, requires adapters to keep using docks and other peripherals (incl. in-car support and other non-replaceables), and the specification is so tightly held that most of the reliant market missed out on Holiday season sales of new products

RE: Flat
By TakinYourPoints on 1/24/2013 3:49:33 PM , Rating: 2


In any case, it still doesn't matter, they released a phone during their holiday quarter with drastically reduced profit margins than the prior one. The last time they made a major revision to the iPhone it was released during the summer quarter.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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