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Even Record Apple Profits Don’t Please Analysts

This article is over 10 years old and may contain outdated information

51 million iPhones sold in the last quarter, 26 million iPads, and yet share price drops.

“Revenue for the quarter was $57.6 billion, up $3.1 billion, or 6%, from the year ago quarter and near the high end of our guidance range,” says Apple’s Peter Oppenheimer. “No technology company has ever generated that much revenue in a single quarter.” Yet it’s not enough for analysts, who predicted even more sales, and share price dipped after the quarterly report by about 5%.

Apple sold 51 million iPhones in the last quarter, a phenomenal achievement, up from 47.8 million year-on-year. But analysts were expecting 55 million iPhone sales, and even though a record is still a record, people are nervous about Samsung and Apple’s other Android rivals. Sure, sales are up, but where’s future growth coming from? Maybe China, where Apple recently struck a deal with China Mobile, or maybe somewhere else; but the worry is that maybe there isn’t any future growth, and it’s all downhill from here.

The Americas is still Apple’s largest sales segment, but it’s declining; revenue fell 1%, to $20.1 billion. Apple attributes this to supply problems for the 5S, and some carriers changing their upgrade policies, such that customers used to upgrading within a year now were forced to wait a full 24 months. Apple’s hoping this is a short term problem, and points to its successes in the emerging markets as a reason for good cheer.

Source: Guardian, Seeking Alpha

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