Apple not immune to the economic pressures in Europe as shares dive following Q3 results and iPhone 5 gossip
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Wednesday 25 July 2012
Apple, the world’s largest company by market capitalisation and a juggernaut whose quarterly profits have a habit of blowing away analysts’ forecasts, showed that it was not immune to the economic pressures building in Europe.
Weaker-than-expected iPhone sales in France, Italy and Germany caused the company to miss revenue and earnings forecasts in the three months to 30 June, and sent Apple shares down over 5 per cent in after-hours trading last night.
Tim Cook, chief executive, also blamed internet rumours about the next generation iPhone, expected later in the year, which led some customers to put off purchases of the existing model.
Apple shipped 26 million iPhones in the quarter, 28 per cent more than in the same period last year but well below the 28 million to 29 million that Wall Street analysts had predicted.
Some observers added in strengthening competition from Samsung, maker of Galaxy smartphones and tablets, into the mix of factors damping Apple’s growth. Tero Kuittinen, analyst at Alekstra, said: “European sales dipped by a very surprising 6 per cent sequentially [from the last quarter]. The combination of Samsung's big roll-outs and suddenly weakening European consumer demand in June created some issues.”
In all Apple had sales of $35.0bn in the quarter, and net profit of $8.8bn, compared to $28.6bn and $7.3bn, respectively, last year. It sold 17.0 million iPads, an 84 per cent increase, but sales of Macintosh laptops and desktop computers, which have gained market share ever since Apple restored its cool with the invention of the iPod a decade ago, were up just 2 per cent.
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 Friends 20th anniversary: The highs and lows of the cast's careers since 2004
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Glasgow 'riots': 'Dishonest' social media users accused of fuelling panic with pictures from London riots
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...