Shares in tech giant Apple fell close to 9% in after-hours trading on Monday night, after the firm reported flat profits of $13.1bn (£7.9bn) during the October to January quarter. The California tech giant said on Monday it had record quarterly revenues of $57.6 billion, helped by selling 51 million iPhones. The company said it […]
Shares in tech giant Apple fell close to 9% in after-hours trading on Monday night, after the firm reported flat profits of $13.1bn (£7.9bn) during the October to January quarter.
The California tech giant said on Monday it had record quarterly revenues of $57.6 billion, helped by selling 51 million iPhones.
The company said it sold 26 million iPads during the quarter to December 28, also an all-time quarterly record, as well as 4.8 million Macs.
‘We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, software and services,’ said Tim Cook, Apple chief executive.
‘We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.’
While Apple remains the most valuable and among the most profitable companies, some analysts are concerned it is losing its edge and failing to keep up with rivals in the smartphone and tablet markets.
The profit of $13.1 billion was unchanged from a year earlier and amounted to $14.50 a share, better than analyst forecasts.
But Apple’s outlook for the current quarter, its second fiscal quarter, were below forecasts at between $US42 billion and $44 billion in revenue.
Apple has been facing pressure from billionaire Carl Icahn, who wants the company to boost the size of its share buyback to deliver more cash to shareholders.
Major gains in China- but drops in other big markets
Crucially for analysts, the firm said revenue rose by 29% in the greater China region, which includes China, Taiwan, and Hong Kong, compared to the same period last year.
On a conference call to discuss the earnings, Cook said: “We really turned in a stellar quarter in greater China.”
Apple announced a deal with the world’s biggest mobile phone network, China Mobile, in December, and many investors had been closely watching the earnings for hints on the company’s performance in the region.
Apple’s phones have been available on China Mobile since 17 January.
“Last week was the best week for activations we’ve ever had in China,” said Cook, while noting that iPhones are only available on China Mobile in 16 cities at the moment.
By the end of the year, Apple hopes to expand its offerings to more than 300 cities.
However, Apple said sales in the rest of the Asia-Pacific region fell 9%, and that profits were hurt by currency fluctuations, particularly with the Japanese yen.
Apple also reported a sales dip in the Americas as well.
This was partially due to stronger than expected sales of the more expensive iPhone 5S.
Apple executives said on the call that it took the firm some time to change its supply chain to provide the US market with more of those phones compared with the cheaper iPhone 5C, primarily aimed at Chinese consumers.
Apple also noted that some US carriers changed their upgrade policies, which hurt sales in the region, as consumers became more reluctant to upgrade aging iPhones.
Sales of iPods – Apple’s once iconic music player – fell 55%.
“I think all of us have known for some time that iPod is a declining business,” said Cook.
Read the official announcement here
