Posted By RichC on July 22, 2015
Chuckling at the “miss” from Applefalling short of their guidance, but they continue to build their bankroll of cash … now above $200 Billion! Profit margins are so far above most tech equipment makers and they are still cranking out the iPhones (47.5 Million in the 3rd quarter).
Unfortunately for shareholders use to $AAPL blowing away the numbers, afterhours traders sold shares after the disappointment. I watched the chart take a nose dive and drop 10% to $120 … but also suspect buyers will soon be back purchasing Apple shares. Frankly, even at $120-130/share they are probably one of the better medium to long term investments.
CNBC with Susan Bennett, voice of Apple’s Siri (MP3) July 21, 2015
Apple sold 47.5 million iPhones, a 35 percent gain, in the period that ended in June, the company said in a statement Tuesday. Analysts had anticipated 48.8 million shipments. The company forecast revenue of $49 billion to $51 billion in its fiscal fourth quarter, which ends in September, short of the average estimate for $51.1 billion, according to data compiled by Bloomberg.
Any indication of slowing demand for iPhones could spark concern that Apple is going to have a hard time selling more smartphones in the final months of the year, after the September debut of the latest version fueled record profits. A new model is expected to be released later this year.
“It’s going to be running up against really hard comparisons,” said Abhey Lamba, an analyst at Mizuho Securities USA Inc. “A lot of people jumped to the larger-screened iPhones, now that we’ve gotten to the point where the innovation in the next release is not going to be as massive as we had last year.”
Net income in the fiscal third quarter, which ended in June, was $10.7 billion, or $1.85 a share, while revenue rose 33 percent to $49.6 billion, the Cupertino, California-based company said. Analysts on average had forecast third-quarter profit of $1.81 a share on sales of $49.4 billion. The gross margin was 39.7 percent, topping the company’s outlook for 38.5 percent to 39.5 percent.
Total revenue from greater China more than doubled to $13.2 billion, even as the Chinese economy weakened.
Apple didn’t release unit sales of the Apple Watch, which was introduced in April. It included the results for the smartwatch in a broad category called “Other,” along with items such as Beats headphones and iPod sales. Revenue in the category rose 49 percent to $2.64 billion, the company said. Analysts predicted on average 3.4 million sales of the Watch with an average selling price of $499, according to the Bloomberg survey.
More at Bloomberg Business