Apple Inc. (NASDAQ:AAPL)
has regained some impetus in its fourth quarter, selling more iPhone than
expected while triggering some concerns about the iPad.
However, the results
ratcheted up the stress on the company for the present holiday season. The
company is preparing to market a new set of products and is struggling with
making enough iPhones.
Apple said it sold 26.9
million iPhones, up 58% from the same quarter recorded previous year. The
September quarter included a week of sales of Apple’s new iPhone 5.
Apple sold 14 million
iPads, up 26% from previous year but less than several estimates.
On the whole, the
company’s revenue increased 27% in the quarter, while profit increased by 24%.
However, the iPhone figures were not enough for investors to be happy. Also,
concerns surrounding profit margins were weighing on them. Apple issued revenue
guidance for the quarter ending in December of $52 billion, which is nearly $3
billion less than the expectations of an analyst.
The results have left
analysts and investors looking forward to the holiday for more lucidity about
whether Apple can keep up its streak. Tim Cook attributed the deplorable iPad
sales to have happened because customers are waiting for the iPad mini.
An analyst at ISI
Group, Brian Marshall said that there are no secrets regarding Apple anymore. He
was the one who said that customers appeared to have been delaying iPad
purchases.
There were new
questions surrounding the iPad, however the iPhone remained Apple’s most
crucial product. Mr. Cook said that with analysts demanding for new iPhone is
immensely robust. He feels that Apple is in a critical state of backlog at the
moment. He added that the company’s productivity has improved exceptionally
since earlier this month.
The iPhone still is the
engine of growth for the company. It represents 47.6% of Apple sales in the
quarter. The smartphone also has wider strategic importance. Apple depends on
users of iPhone and their loyalty to drive sales of Macs and iPads.
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