Apple reported its third-quarter financials in an earnings call yesterday, missing Wall Street's forecasts partly due to slowing demand from Europe and because of the continued speculation surrounding its next generation iPhone, as consumers wait for the new handset's arrival sometime later this year.
Revenue from the Asia-Pacific market grew by 25% to $5.7 billion, a 48% increase year-on-year with Greater China accounting for two-thirds of the total revenue for the region. This in spite of the new iPad just launching on Friday after settling the iPad name dispute in that country.
Apple reported revenues of $35 billion during the third quarter, missing analysts’ estimates of $37.2 billion. The firm’s net profits came to $8.8 billion, or $9.32 per share, short of industry analysts’ predictions of $10.32. Apple’s large stockpile of cash grew by another $7 billion to $117.2 billion during the three-month period.
“The sheen is off the apple: It was a miss, no question about it,” said David Rolfe, chief investment officer at Wedgewood Partners Inc., whilst pointing out that Apple has only failed to beat analyst estimates twice in the last ten years. “We became too confident, in our expectations, that Apple had literally a perfect pulse on end demand throughout the globe... and quite simply, that wasn't the case this quarter.”
The Cupertino-based firm sold 26 million iPhones during the three-month period ending June 30, a 28% increase year-on-year. iPad tablets sold just as well, with 17 million sold during the quarter, a massive 84% bump. Mac sales hit four million, a 2% increase year-on-year. The iPods didn’t fair so well with a 10% decline year-on-year to 6.8 million, and despite Tim Cook continuing to label the Apple TV a company's "hobby”, it sold 4 million units, more than doubling its year-on-year sales.
Apple blamed the current Eurozone instability with particularly sluggish sales in France, Greece and Italy as well as speculation surrounding the new iPhone as the main reasons for missing analyst predictions. That did little to help the firm on the stock exchange though, as shares dropped below $600 in after-hours trading.
Peter Oppenheimer, Apple’s chief financial officer also confirmed during the earnings call that the company’s latest desktop operating system OS X Mountain Lion will go on sale later today.
The MacBook Air sports a 1.8GHz dual-core Intel Ivy Bridge Core i5 processor that Turbo Boosts up to 2.8GHz, 4GB of 1600MHz DDR3L SDRAM, 128GB of flash storage and integrated Intel graphics. It is still extremely thin and lightweight at only 0.68-inches at the thickest part and 2.96 pounds. The MacBook Air carries a 13.3-inch diagonal LED backlit display, operating at 1440 x 900 with a 16:10 aspect ratio.
The Apple MacBook Pro with Retina Display is equipped with a third generation Intel Core i7 processor clocked at 2.3GHz, 8GB of DDR3L 1600MHz RAM, 256GB of flash storage, Intel HD 4000 Graphics, a discrete Nvidia GeForce GT 650M GPU with 1GB of GDDR5 memory and a built-in FaceTime HD camera. It sports a SDXC card reader, HDMI port, two USB 3.0 ports, MagSafe 2 power connector and a dual Thunderbolt ports.
The Apple iPad (3rd-gen) includes a Retina Display operating at a resolution of 2,048 x 1,536. Powering the new iPad is a dual-core A5X processor with quad-core graphics, it also gets upgraded optics in the form of a 5MP backside illuminated sensor that features a 5-element lens, IR filter and ISP built into the A5X chip. Apple claims The new iPad is good for 10 hours of battery life and nine hours when using 4G LTE.
The iPhone 4S looks identical to last year's model but comes in a new 64GB flavor and upgrades the camera to include an 8-megapixel sensor with improved low-light performance and 1080p video capture. In terms of performance the new iPhone is reportedly up to 2x faster and is also capable of running on faster HSPA+ networks, reaching theoretical download speeds of up to 14.4Mbps.
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