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.

/u/w/t/iPhone4s.jpg

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.”

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here