Apple reports shrinking quarterly profits, but not as bad as analysts expected
SAN FRANCISCO — Apple's latest quarterly report confirms the iPhone maker's growth has stalled along with its pace of innovation.
The results announced on Tuesday mark the second straight quarter that Apple Inc.'s earnings have fallen from the previous year after a decade of steadily rising profits. The company earned $6.9 billion, or $7.47 per share, in its fiscal third quarter, a 22 percent drop from $8.8 billion, or $9.32 per share.
Despite the erosion, Apple fared slightly better than analysts had anticipated. That helped lift Apple's stock by $22.01, or more than 5 percent, to $441 in extended trading after the financial results came out. The shares remain down by more than 35 percent since the latest model of the iPhone came out 10 months ago.
Apple's revenue for the three months ending June 29 barely budged from last year. That's the smallest revenue increase since the Cupertino, Calif., company unleashed a mobile computing revolution with the iPhone's debut six years ago.
Apple hasn't released another breakthrough product since the iPad came out three years ago, raising concerns the company has lost its touch since the October 2011 death of founder Steve Jobs.
The earnings topped the average estimate of $7.31 per share among analysts surveyed by FactSet.
Revenue totaled $35.3 billion versus $35 billion a year ago. Analysts had projected that revenue would be unchanged from a year ago.
As usual, Apple was propelled by its iPhone sales. The company sold 31.2 million units in the quarter, a 20 percent increase from the same time a year ago.
But many people were evidently buying the earlier generations of the smartphone, which cost less than the latest model and generate smaller profit margins for the company.
To make matters worse, the company sold 14 percent fewer tablets — 14.6 million in the past quarter compared with 17 million a year ago.
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.
- Pennsylvania Game Commission reaps revenue from shale gas under game lands
- University of Pittsburgh researchers revisit war of electric currents
- Commercial roofer CentiMark focuses on internal growth, not mergers
- As historic breakup nears, Alcoa works to redefine its ‘advantage’
- Energy Spotlight: Minking Chyu
- Nutritional supplement makers, led by GNC, want to create voluntary safety standards