Friday, October 31st10.2°C
23888
23823

Apple's record sales of iPhones, iPads during fiscal 1st-quarter not enough to appease Street

SAN FRANCISCO - Apple's holiday season proved to be a letdown, even though the company sold a record number of iPhones and iPads during its latest quarter.

The results released Monday further crystalized the challenges facing Apple as the world's most valuable company struggles to lift its stock back to where it stood in September 2012. That was before investors began to fret about fiercer competition in mobile devices and the lack of a breakthrough product since the iPad came out nearly four years ago.

Apple's management amplified those concerns with a revenue forecast that fell below analysts' predictions for the current quarter. The cautious outlook is likely to feed perceptions that Apple expects to lose more ground to competing devices running Google Inc.'s Android software.

Apple's stock to shed $45.45, or more than 8 per cent, to $505.05 in extended trading after the release of results.

By most measures, Apple Inc. had its best quarter during its fiscal first quarter, which ended Dec. 28. Besides hitting new quarterly highs for the sales of its most popular products, Apple also delivered earnings that exceeded analyst projections. It also produced the highest quarterly revenue in its 38-year history.

But Wall Street had higher hopes after Apple stoked consumer demand by unveiling new versions of its iPhone and iPad in time for the holidays. The iPhone 5S added several new features, including a sensor that can read fingerprints to unlock the device, while the iPad Air dangled the appeal of being the slimmest and lightest full-sized tablet made by Apple so far.

The company sold 51 million iPhones during the three months ending Dec. 28. That marked a 7 per cent increase from the previous sales record of nearly 48 million iPhones set a year earlier.

Analysts, though, were expecting even bigger things and had predicted about 55 million iPhones in what is traditionally the company's best quarter. Apple's stock had been rising on the expectation that the company would clear the hurdle.

Apple sold 26 million iPads during the quarter, in line with analyst predictions. The iPad volume represented a 14 per cent increase from the same time in 2012.

Apple earned $13.07 billion, or $14.50 per share, in the quarter. That's roughly unchanged from $13.08 billion, or $13.81 per share, in the prior year. The per-share figure increased because Apple had fewer shares outstanding in the recent quarter.

The company has spent $28 billion buying back its stock in the past five quarters. Despite that spree, Apple still ended 2013 with nearly $159 billion in cash. Activist investor Carl Icahn, who owns about $3.6 billion worth of Apple stock, is pressuring Apple to spend $50 billion buying back its stock during this fiscal year. The company has rebuffed Icahn so far.

Revenue for the fiscal first quarter rose 6 per cent to $57.6 billion.

Analysts, on average, had expected Apple to earn $14.09 per share on revenue of $57.5 billion, according to FactSet.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14613.32+154.63
S&P CDNX769.59-2.06
DJIA17390.52195.10
Nasdaq4630.742+64.604
S&P 5002018.05+23.40
CDN Dollar0.8876-0.0058
Gold1166.30-32.2999
Oil80.55-0.35
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.85+0.63
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 





FEATURED Property
210238763 Puckett Rd.
10089531/10089532 bedrooms
$389,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22771