Apple shares plummet as growth shows signs of slowing
Thursday 24 January 2013
Apple shares plunged today after the company reported quarterly results that point to growth slowing after five blowout years.
The stock was down $53.55 or 10 per cent, at $460.46 in midday trading.
Apple Inc. is still the world's most valuable company, a position it's held for more than a year. It's now worth just 3.5 per cent more than No. 2 Exxon Mobil Corp, however.
Yesterday, Apple reported October-December earnings that were flat compared with the year before. Sales grew 18 percent from the year before, but the startup of production lines for multiple new products like the iPhone 5 and iPad Mini held back profits.
Of more concern to investors is Apple sales growth forecast for the current quarter of around 7 per cent —far from the 50-per cent-plus rate it's often hit in recent years. Apple usually lowballs its forecasts, but chief financial officer Peter Oppenheimer indicated that it's moving toward providing more realistic figures from now on.
Analysts believe Apple is unable to fully capitalize on the global smartphone boom with just one new —and very expensive— phone model every year. There has been speculation among company-watchers that Apple may launch a cheaper iPhone, or a premium model with a bigger screen, but CEO Tim Cook put a damper on those rumors in his comments on a conference call following the report.
- 1 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Israel's propaganda machine is finally starting to misfire
- 5 HSBC closes bank accounts belonging to Muslim clients in the UK
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Drew Barrymore’s sister Jessica found dead in her car surrounded by 'dozens of white pills'
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...