Apple stock has a hit after its first quarter earnings were
released on Wednesday afternoon, topping profit forecasts, but with a
lower-than-expected iPhone sales.
Shares of Apple (Nasdaq: AAPL) has more than 5 percent in
after-hours trading. Apple stock was 1.86 percent to $ 514.17 in New York at
the end of the matter.
"No technology company ever reported these kinds of
results," said Tim Cook, Apple CEO, said on the earnings call.
The company reported that it sold 47,800,000 iPhones in the
quarter, compared with 37 million in the same quarter a year ago. Many
investors hoped the company 50 million iPhones, which drives Apple's earnings
would sell.
Investors eagerly awaited Apple to report its earnings,
seeking clarity to a number of rumors about iPhone parts and sales.
Earlier this week there were reports about the next iPhone
is released in June.
"Certainly a new product line," said Brian
Colello, Morningstar senior equity analyst. "It remains to be seen what
Apple will eventually come out and when it is definitely factors to keep an eye
on."
Last week, a report that Apple his order for iPhone partsmay
decreased contributed to a decline in its share price to close to $ 500.
"It will be interesting to see if Apple really push the
envelope in terms of innovation and shortening the product cycle," Colello
said.
Colello said Apple faces growing competition from Samsung.
Last summer, when Apple released the iPhone 4S, Samsung released its Galaxy S
3, which has a strong sales.
On Wednesday, Apple Inc., based in Cupertino, Calif., said
it was a "record" 22,900,000 iPads sold in the quarter, compared to
15.4 million a year ago. The company also sold 4.1 million Mac computers,
compared to 5.2 million in the same quarter last year.
On Apple's earnings call CFO Peter Oppenheimer Mac slide
attributed to the refreshed Mac products not be released until December. Its
new iMac desktops were sold to early December.
"We believe that Mac sales would have been much higher
without the restrictions," Oppenhimer to the call.
Colello said the iPhone unit sales was "a bit of a
disappointment."
And despite a record number of iPad sales, he said they were
still lighter than Wall Street's expectations.
The company failed to beat Wall Street's expectations on
revenues, but it beat forecasts for profit. Apple's own estimate was $ 52
billion in revenue.
"We are excited about record revenues of more than $ 54
billion and sales of over 75 million iOS devices in a single quarter,"
Cook said in a statement. "We are very confident in our product pipeline
as we continue to focus on innovation and creating the best products in the
world."
In light of the company's "relatively weak"
quarterly earnings, Colello said Apple's forecast for $ 41 billion to $ 43
billion in revenue in the future "light."
The company can still boast about the amount of cash
accumulated: $ 137,000,000,000.
On Tuesday, some investors have their hopes to Verizon
reported a stronger-than-expected number of new iPhone subscribers during the
conference call.
Colello warned that Verizon's iPhone sales were strong, but
they also have a large number of older iPhone models sold.
"It is clear that the iPhone is the biggest driver, but
there are a few factors, such as the types of units and at what price,"
Colello said. "Was it the phone 5 or 4S?"
Apple does not break the type of iPhones sold.
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