IPhone sales disappoint but Apple profit still soars

Apple’s shares fell more than 6% after it missed its third quarter earnings expectations for the first time in years, as iPhone sales disappointed investors.


The technology company, now the biggest in the world, sold 17.1 million iPhones in the three months to 24 September, a 21% increase year on year, but missed analysts’ projections of 19 to 20 million units.

No new smartphone models were released in the period, meaning sales were likely to have been hurt by consumers waiting for the latest model, the iPhone 4S, which was launched this month. The 4S sold more than 4 million units in three days.

Chief executive officer Tim Cook said on a conference call yesterday (18 October): “We are very confident that we will set an all-time record in the December quarter for iPhone sales.”

IPad sales beat expectations and were up 166% year on year to 11.1 million units. Mac computer sales were up 27% year on year to 4.9 million.

Profit in the quarter soared 54% to a record high $6.62bn (£4.2bn), on the back of a 39% jump in revenue to $28.27bn (£17.9bn).

The results were the first reported since the death of Apple co-founder Steve Jobs, who had been fighting pancreatic cancer for a number of years.

Cook said yesterday: “Steve was a great leader and mentor and inspired everyone at Apple to do extraordinary things. His spirit will forever be the foundation of Apple, and we are dedicated to continuing the amazing work that he loved so much.”

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