Print 94 comment(s) - last by Argon18.. on Jan 28 at 1:27 PM

  (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 maugrimtr on 1/24/2013 11:28:42 AM , Rating: 3
Started laughing when he mentioned the S version of phones being historically the profit makers. You mean the history of one other phone, the 4s? One data point, a trend does not make.

RE: Flat
By retrospooty on 1/24/2013 11:58:14 AM , Rating: 2
LOL... Ya, he's kind of lost in this iMentality, where he needs to prove its the best. Logic and reason seem to go out the window in favor of trying to prove a point at all costs. I think it makes him feel better about his purchases... I dunno. Whatever.

RE: Flat
By Cheesew1z69 on 1/24/2013 3:42:46 PM , Rating: 2
"not an ifan"

but sure defends like one...

RE: Flat
By TakinYourPoints on 1/24/2013 3:44:29 PM , Rating: 2
Its true though. The move to the iPhone 4 was reflected in a drop in profit margins due to new manufacturing process while margins improved with the iPhone 4S. Same happens with any of their other new products.

Hell, the same happens in all sorts of industries, tech in particular, just look at chip fabs when they go to a new process. This isn't rocket science.

RE: Flat
By Nortel on 1/24/2013 4:53:35 PM , Rating: 2
Lol, who was the guy who gave you a vote? There have only been a handful of iPhones and you forgot about the "iPhone 3s".

RE: Flat
By augiem on 1/24/2013 5:36:11 PM , Rating: 2

RE: Flat
By TakinYourPoints on 1/25/2013 6:02:45 PM , Rating: 2
This place is a circlejerk, always some idiot fanboy who'll upvote a terribly reasoned post because hurr durr Apple

RE: Flat
By Cheesew1z69 on 1/26/2013 7:59:32 AM , Rating: 2
And you are a loser, your point?

"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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