Breaking News Bar
posted: 10/28/2013 5:18 PM

Apple's iPhone sales rise, but 4Q earnings fall

hello
Success - Article sent! close
  • Apple CEO Tim Cook speaks on stage before a new product introduction Oct. 22 in San Francisco. Apple on Monday forecast gross margins that missed analysts' projections.

      Apple CEO Tim Cook speaks on stage before a new product introduction Oct. 22 in San Francisco. Apple on Monday forecast gross margins that missed analysts' projections.
    ASSOCIATED PRESS

 
Associated Press

SAN FRANCISCO -- Apple's latest quarterly earnings fell 9 percent as more people bought the company's lower-priced iPhones and iPads.

The company's fourth-quarter results announced Monday included early sales of the latest iPhones released late last month.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The models, called the 5S and 5C, helped Apple Inc. increase its iPhone sales from the same time last year. But the average price that Apple fetched for its iPhones declined to extend a recent trend that has trimmed the Cupertino, Calif. company's profit margin and depressed its stock price.

This marks the third consecutive quarter that Apple's earnings have dropped from the previous year.

Apple earned $7.5 billion, or $8.26 per share, during the three months ending Sept. 28. That compared to income of $8.2 billion, or $8.67 per share, last year.

The latest quarterly earnings topped the average estimate of $7.92 per share among analysts polled by FactSet.

Revenue rose 4 percent to $37.5 billion -- about $600 million above analyst predictions.

Investors were hoping for a better showing and, perhaps, a more optimistic forecast for the current quarter, which covers the crucial holiday shopping season. Management forecast revenue ranging from $55 billion to $58 billion in the quarter ending in late December. Analysts had projected revenue of $55.6 billion.

Apple's stock shed $11.09, or 2 percent, to $518.79 in extended trading after the numbers came out. The stock is down about 25 percent from its peak reached 13 months ago, reflecting Wall Street's worries about the earnings slump amid fiercer competition in the smartphone and tablet computer market. Investors are also concerned that the company hasn't introduced a breakthrough product since the death of Apple's co-founder and chief visionary, Steve Jobs, two years ago.

The company sold 33.8 million iPhones in the past quarter, a 26 percent increase from the same time last year. But the prices for those iPhones averaged $577, a 7 percent decrease from an average price of $618 a year ago.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.