Apple disappoints Investors on iPad Sales
October 26, 2012- On Thursday, Apple announced record revenue thanks to the hugely successful sales of its iPhone, but for the second consecutive quarter, sales for the iPad were less than what Wall Street had expected.
The holiday forecast also looks to be less profitable said the company. The company has rolled out an aggressive assortment of products including a new iPod, a new iPhone, a new small and a new larger iPad and a new MacBook Pro over the past six weeks.
On Thursday, during an earnings call, executives for Apple said the tech giant had sold nearly 27 million iPhone during the third quarter. That represented a 58% increase and was higher than what Wall Street analysts had estimated. Apple also sold more than 14 million iPads during the quarter, which was an increase of 26%, but that figure fell well below the 18.5 million that Wall Street had projected.
One analyst said the Apple’s rate of growth is rapid by not yet insane. He said the company was growing its Mac, retaining its position in the tablet sector and appeared to be taking whatever percentage of the smartphone market it chose.
Apple’s $36 billion revenue was a new record and an increase of 27% over the same quarter in 2011. Revenue was higher than what Wall Street had expected. Net profit for the company was $8.2 billion, which was up over 24% from the same quarter last year, which also did not reach Wall Street’s projections.
CEO Tim Cook told investors about the leaner profits by saying the company remained dedicated to producing the best products across the globe, took into account the smallest of details and would not cut corners.
The iPhone was the winner for the quarter for revenue supremacy. That one product represented $47.5% of all of Apple’s sales. It was slightly higher than the contribution of the iPhone during last quarter, but also the second consecutive time that the portion for the iPhone was lower than 50% of all sales.