Apple set to announce first profits dip in 10 years after chip sale slowdown

 

Apple is expected to reveal its first profit slide in a decade when it releases its latest figures today.

The technology giant is widely forecast to announce a decline in earnings amid reports of a slowdown in sales of its iPhone and suggestions that the company has lost crucial ground to rivals such as Samsung.

Just last week Apple lost its position as the world's most valuable publicly traded company when its shares hit their lowest levels in a year-and-a-half.

This came after one of the firm's suppliers - Cirrus Logic which provides sound components for the iPhone and iPad - said sales of a particular chip were slowing down.

Industry observers expect today's report to show a dip in profits of up to about 20 per cent, compared with the same period last year.

The result would mark the first time Apple has suffered a fall in earnings since 2003 when it opened its iTunes Store.

The company has enjoyed huge success during the past decade but suffered a bruising winter after its rocket-like growth stalled.

This led to speculation that demand for its flagship phones was shrinking and accusations that Apple was running out of ideas.

The firm was dealt a further blow in January when figures for the Christmas period showed earnings of 13.1 billion US dollars (then £8.2 billion) remained flat compared to the year before - the first time in years that the technology giant had not boasted double-digit increases in earnings.

More recently, Apple has faced pressure from investors calling for new hit products, and mounting competition from Samsung which unveiled its latest Galaxy S4 handset to much fanfare in New York last month.

But analysts suggested a slide in profits would not necessarily spell bad news for Apple.

Stuart Miles, founder of technology and gadget site Pocket-lint, said today's results were likely to reflect the fact that there were no major Apple launches during the most recent quarter.

"Apple is in a quiet period before the next bang when they unveil a new product," he said.

"They are keeping their heads down and letting the products speak for themselves.

"Apple has also had a lot more competition. You might find people aren't buying the iPhone 5 because they are waiting for (Samsung's latest offering) the SGS4.

"If iPhone sales have dropped, that is probably the reason."

Apple's next iPhone was initially expected to be unveiled in June but rumours suggest its release may not take place until September.

Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers, said Apple had "fallen foul" of some Wall Street investors.

"Its ability to innovate and shock has been brought into question, whilst the company is under pressure to deploy some of its massive cash pile," he said.

"However, with the new versions of the iPhone and iPad yet to come, and with the rumoured Apple TV and iWatch in the pipeline, it would be a brave call to continue to bet against Apple.

"Despite the pressure, the market consensus is still a strong buy."

PA

News
people
Sport
FootballGerman sparks three goals in four minutes at favourite No 10 role
News
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
Sport
A long jumper competes in the 80-to-84-year-old age division at the 2007 World Masters Championships
athletics
PROMOTED VIDEO
Sport
Radamel Falcao was forced to withdraw from the World Cup after undergoing surgery
premier leagueExclusive: Reds have agreement with Monaco
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvHe is only remaining member of original cast
Life and Style
Walking tall: unlike some, Donatella Versace showed a strong and vibrant collection
fashionAlexander Fury on the staid Italian clothing industry
Arts and Entertainment
Gregory Porter learnt about his father’s voice at his funeral
music
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
tvHighs and lows of the cast's careers since 2004
Life and Style
Children at the Leytonstone branch of the Homeless Children's Aid and Adoption Society tuck into their harvest festival gifts, in October 1936
food + drinkThe harvest festival is back, but forget cans of tuna and packets of instant mash
Sport
Lewis Hamilton will start the Singapore Grand Prix from pole, with Nico Rosberg second and Daniel Ricciardo third
F1... for floodlit Singapore Grand Prix
New Articles
i100
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam