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: Apple disappoints: 2
1/24/2013 11:05:46 AM
I think you misunderstand stock. Stock is priced based on prospective valuation; not "how well did you do" but "how well do I think you'll do."
An analogy is sports bets. If I bet that the Lions will lose by 14 or less, and they lose by 10, I win. The Lions still lost, but I get paid. (Ex. I bought some AMD before their earnings call and have made about 14% on that as of this writing in a day and a half, even though they're bleeding money).
Conversely if I think the Ravens will win by 21 or more, and they win by 14, they all get to celebrate and I'm crying in my beer.
Here, people bet (paid for stock) thinking Apple would perform at a certain level; they did less than that, so their stock value drops to match the reality.
Doesn't mean Apple is bad, doomed, or obsolete; but they do need to recognize that the things that made them premium are now offered by everyone, and create something new (or get run over by lower prices).
RE: Apple disappoints: 2
1/24/2013 11:20:36 AM
He doesnt understand anything that doesn't make Apple look like a glowing beacon of the universe. It simply doesnt make sense to him. Either that or it doesnt serve his agenda. ;)
"Folks that want porn can buy an Android phone." -- Steve Jobs
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
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
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
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information