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Apple misses on earnings, but sells record 17M iPads

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Apple Event 10/4 Apple LogoApple reported its fiscal third quarter earnings on Tuesday of $35 billion in revenue and $8.8 billion in earnings, or $9.32 per share. That’s ahead of what Apple(s AAPL) itself had forecast, but below what Wall Street was expecting. For the closely watched iPhone sales, Apple came out on the lower side of expectations: 26 million iPhones. Its iPad sales were a record for the company though: 17 million sold during the quarter.

Unsurprisingly, Wall Street reacted negatively, sending the stock down five percent to $569.32 in after-hours trading on the news. Investors were anticipating $37.2 billion in revenue and $10.36 in earnings. Apple had forecast revenue of $34 billion and EPS of $8.68.

Here’s the device sales breakdown: 26 million iPhones, an increase of 28 percent from the same quarter a year ago; 17 million iPads, an 84 percent increase; 4 million Macs sold, a modest 2 percent bump from last year, and 6.8 million iPods, which is off 10 percent.

Analysts who follow Apple had a wide range of expectations for iPhone sales, from 27 million up to 37 million unit sales. Apple’s actual sales came in under that, at 26 million, which will cause much handwringing on the part of investors. The iPad, meanwhile is an obvious bright spot for the company, beating its previous iPad sales record set this past holiday season.

CEO Tim Cook stayed positive in the press release accompanying the earnings call: “We’re thrilled with record sales of 17 million iPads in the June quarter. We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

There is the usual conference call with Apple executives and Apple investors, who will undoubtedly have many questions, scheduled for 2 p.m. PT today.


10 Responses to “Apple misses on earnings, but sells record 17M iPads”

  1. Bob Wan Kim, CEO

    Don’t count Apple out yet. Sure. Investor confidence in Apple is shakey since Steve Jobs’ passing but the new iPhone 5 is a major hint about what apple is planning on doing in the next 5 years.

    The iPhone 5 is 31% Thinner.

    Apple is integrating the iPad and iPhone touch sensors into the Retina Display cells. And their supply chain partners who built this new iPhone are LG Korea, Japan Display, Sharp, and Corning — All competitors of Samsung and HTC and … MOTOROLA… What this means is huge:

    After all, apple was the first to integrate the whole CPU into the actual display of the iMac. The iPhone 7 might just be a screen and nothing else.

  2. It was the best third quarter in the history of Apple as a company. Oh and by the way Apple will pay a $2.65 per share dividend starting august 16th 2012, must own shares by august 13th 2012 however. A easy buying opportunity tomorrow morning.

  3. Alain Paradis, R.G.D.

    That’s the silliest headline I’ve seen in a while. It’s $35,000,000,000! Who cares what some analyst guesses it could possibly be. It’s 35,000,000,000 freakin’ dollars!