Apple shares fall as Q4 profits miss analysts’ expectations
The maker of the phenonmenally successful iPhone and iPad said sales of the latter were lower than expected as buyers put off purchases in the summer in anticipation of the release of the mini iPad this month.
Profits were up $8.2bn, compared to $6.6bn last year while revenues of $36bn narrowly misses estimates of $36.6bn, according tyo ther BBC.
Apple’s finance director Peter Oppenheimer said: “”We were happy with the 14 million iPad sales in the quarter. It exceeded our expectations. But as the summer went on, the rumours were pretty rampant about the iPhone and iPad.”
The Q3 results follow a tougher spell for Apple. Having hit a record high above $700 per share last month, the stock has retreated in recent weeks, dropping nearly $100 to trade around $615 before the results were announced.
Much of it will have been profit-taking – the stock is still up 54.5% over the last year despite the recent fall – although some analysts have also warned Apple cannot fly ahead regardless if the global economy is slowing and consumers are under pressure.
However, Apple’s chief executive Tim cook is confident about Christmas sales. “We are entering this holiday season with the best iPhone, iPad, Mac and iPod products ever, and we remain very confident in our new product pipeline.”