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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: Key:
By Tony Swash on 1/24/2013 6:13:46 PM , Rating: 1
quote:
The last major innovation was the initial iPhone in 2007,


I note that you do consider the iPad to be a major innovation. Interesting. I know at the time many dismissed the device as just a big iPod Touch but since then it's gone to generate a $35+ billion business for Apple, created a entirely new dynamic tablet market and started the gutting of the PC market. That certainly seems a major sort of innovative development to me but maybe we have different standards

quote:
Now Android not only caught up, but surpassed Apple in most measures


Except for hardware profits, developer revenues, customer loyalty, advertising income, web commerce transaction rates, digital content consumption rates, web browsing rates and deployment rates in government, education, sports and the enterprise sector, other than that Android is winning!!


RE: Key:
By retrospooty on 1/24/2013 6:54:06 PM , Rating: 2
"I note that you do consider the iPad to be a major innovation."

IF you count putting the same thing on a bigger screen as innovation, then yes. I do not. Point taken thought,it did sell well and still does. But my point stands. Todays iPad is exactly the same as the original with faster SOC and higher res.

"Except for hardware profits...... Android is winning!!"

I was referring to the tech. In features and what you get as a customer for your $ Android is WAY ahead the rest is coming.


"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer














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