Sluggish sales of iPhones during Apple’s fourth quarter contributed to revenue that was up more than 39% year-over-year at $28.27 billion but missed analysts’ estimates. Earnings per share were $7.05, less than the street’s $7.39 target — the first time the company has missed EPS estimates, or any estimates, for that matter, in seemingly forever (OK, since 2004). Wall Street was stunned. Apple reported after the bell this afternoon, and the stock was down as much as 7% after hours before rebounding slightly. (At least one analyst predicted such a drop.) Shares of Apple had risen to a new high, $422, on Friday.
Sales of iPods, iPads and computers came in mostly as predicted, leading some to believe that the lower-than-expected iPhone number — 17.07 million units — was because consumers (and maybe even Apple) held back on buying iPhone 4s in favor of waiting for the new iPhone 5 or even 4S, which new CEO Tim Cook introduced in his first public appearance the day before the death of company co-founder Steve Jobs. That should be considered a possibility, especially considering that Apple offered better-than-expected guidance for the first quarter.


Someday everyone will discover that the IPad is merely a paperweight and only apple’s quest to avoid making netbooks dor fear of cannibalizing their laptop sales.
Typical Windows Lover myopia. A tablet is NOT a netbook, nor is it a replacement for same. Go down to any hospital and see how many doctors and nurses are using iPads. That number will only increase. I see them in ALL KINDS of jobs that no one would ever use a netbook for. I traveled to a Videogame Developers Conference last week and lugged my laptop along with me, and the entire time, EVERYONE around me was using an iPad and I was cursing myself for leaving mine at home out of fear that I’d need more processing power. I didn’t, and next time the laptop stays at home, or at least back at the hotel. You’re just wrong on this one.
Rumors have always existed, even during times when their stock was on rise. Sounds like a scapegoat to me.
Hmmm. Apple’s guidance for 4th quarter was $25 billion with diluted earnings per share of about $5.03. It comes in at $28.3 billion and earnings of $7.03. And Deadline Hollywood reports that the company missed it’s target? The people who missed were the analysts.
Dudette you sound like of piece of $/:@, net books suck big time!!! I travel like crazy and rarely see,if ever, a netbook. I constantly see iPads everywhere especially travelers. I was just in Boston at a local Starbucks adjacent to Harvard I counted 23 students on laptops and tablets all were apple but 2.
Just another example of what is wrong with our stock market and financial system. Apple releases the iPhone 4S which results in record sales figures, although not the version 5 everyone wanted and speculated would come. The iPad continues to dominate almost all of the tablet competition, even at the expense of some Macbook sales (according to Apple).
So, just because some industry analysts think you should have made even more money, the sales figure “disappoint”? Insane.
The demand for instant payoff also ruins these assumptions. It seems reasonable to project that 2012 will be a huge year for Apple, if they release the iPad 3 (in March) and iPhone 4 (in June) as anticipated. Revisions to the Macbook line will also improve sales.
While I do not own any Apple products, I think they do a very good job timing the release of their products. While they stumble every so often, their success rate seems to be the envy of the industry. Analysts like Gartner eschew the long view in favor of immediate profits.
Another reason to occupy Wall Street.
Sorry – that should be the iPhone 5 in June 2012.
Spot on Media Viewer. I always hated that about Financial “experts”. If the company doesn’t do what they expect, it’s deemed dissapointing. So let’s discount the fact that Apple met their own goals AND revenue was aup a whopping 40% year over year. Of course iPhone sales slowed because this new phone was released later in the cycle than all the previous versions and people held off on buying iPhone 4′s in anticipation of an iPhone 5 or 4S. They continue to grow market share in PCs. They are far and away the leader in tablet sales. And finally, they are opening up iPhones to more and more carriers here and abroad, thus creating further market penetration. With more than $80 billion on hand, and new anticipated products launching next year, I think Apple will continue to reap profits and will be okay in the foreseeable future.