Apple's profit surge stalls
NEW YORK — Apple's profit surge halted in the latest quarter, as a flood of new products like the iPhone 5 meant high start-up costs for new production lines.
Apple posted net income for the October to December quarter that was flat with the year before. It was the first time in years that Apple didn't post a double-digit earnings increase.
The report also made clear that Apple is no longer able to sustain the breakneck sales increases of the last three years, even with a fresh iPhone on store shelves.
Apple shares fell $54.01, or 10.5 percent, to $466.00 in extended trading, after the release of the results.
Net income in the fiscal first quarter was $13.1 billion, or $13.81 per share.
That still beat expectations, as analysts polled by FactSet had forecast earnings of $13.48 per share.
Revenue was $54.5 billion, up 18 percent from a year ago. Analysts were expecting $55 billion.
“The revenue number is dismal as far as what the expectations were,” said Jeff Sica, president and chief investment officer of SICA Wealth Management.
But he added that while it's an “incredible number” on its own, Apple has “fallen victim to the curse of high expectations.”
Apple shipped 47.8 million iPhones in the quarter, about 1 million less than analysts were expecting, and 22.9 million iPads, also about 1 million short.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Balancing gas pipeline expansion, environmental unease a problem in Pa.
- Coal gathering opens with dour assessment, political vitriol
- Hospitals turn to technology to tear down language barriers with patients
- More companies embrace exchanges to curb health care costs
- Symposiums to spotlight Pittsburgh’s role as an energy powerhouse
- Range Resources to pay $4.15M fine, close old gas drilling impoundments
- 2 top executives at Dick’s Sporting Goods to retire
- MarksJarvis: Benefits, not just pay, hit the skids
- Retailers begin efforts early to woo holiday shoppers
- Consol, Noble expect at least $325 million from partnership’s IPO
- Alcoa shifts retirees to private health insurance exchanges