Tuesday, September 9, 2014

Earnings Apple Exceed Street Projections but Issues Remain

Apple reported fiscal fourth-quarter 2013 earnings October 28, and while the key metrics exceeded Wall Street expectations, the news was not all companies liking. The Cupertino, California-based PC maker, one of the richest companies in the world, posted revenues of $ 37500000000 and net income of $ 7.5 billion ($ 8.26 per share, down 8.6 percent from 2012), when compared to $ 36000000000 and $ 8.2 billion in the quarter a year ago. Holder was watching. Apples stock price fell $ 6.45 in after-hours trade to $ 523.43. Strong iPhone sales, Apple sold 33.8 million of them, a record for the fourth fiscal quarter, compared to 26.9 million for the year-ago quarter.

But there are some major areas of concern: iPad sales were flat, and Mac sales down 300,000 units from the fourth quarter of 2012. Apple also sold 14.1 million iPads during the quarter, compared with 14 million in the year-ago quarter. It sold 4.6 million Macs, compared with 4.9 million in the year-ago quarter.
Apple iPhone sells well in the U.S., but the company continues to have difficulty moving internationally. This is because an increasing number of buyers moving to cheaper Android phones made ​​by Samsung, HTC, Motorola, and Nokia.

Apple has sold 26 percent more iPhones than it did last year, but revenue from the product line down 17 percent. The average selling price of $ 577 iPhone down $ 4 from three months ago and down 10 percent from last years full.
Apples provide guidance for the first fiscal quarter of 2014, projecting revenue between $ 55 billion and $ 58 billion.

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