Apple reports higher earnings, stock drops 5% after hours
Apple sold 17.1 million units of the Apple iPhone last quarter and 11.1 million Apple iPod copies. For the former, that was a 21% increase from the prior year and for the latter, sales nearly tripled year-over-year. Just last Friday, the company launched the Apple iPhone 4S and the latest iteration of Apple's touchscreen phone sold 4 million units over the opening 3 days. The latest iPhone won't have an impact on earnings until the first quarter 2012 report.
It is a strong start to Apple's flagship product which nonetheless has some tough competition including the Samsung Galaxy S II and the just announced Motorola DROID RAZR. Tonight, another competitor will be launched when Google and Samsung introduce the Google Nexus Prime (also known as the Google Galaxy Nexus), the first phone to run on the latest Android build, Ice Cream Sandwich.
source: Apple via WallStreetJournal
1. andro. (Posts: 1971; Member since: 16 Sep 2011)
Things could become tougher for apple with all the reports of complaints flooding in of faulty screens and poor battery in the iphone 4s
4. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
I'm not seeing any of these reports that you're claiming. Can you show even 1 article with these reports?
12. andro. (Posts: 1971; Member since: 16 Sep 2011)
Iphone 4s faulty screen:
(if above link doesn't work just google iphone 4s yellow screen its the second search result)
Iphone 4s poor battery:
13. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
these are all forums except one. The yellow screen happened last time because glue hadn't dried and it fixed itself
16. L3610n (Posts: 47; Member since: 01 Jul 2011)
Yeah, one of them is the official Apple customer support forum... SMH.. I don't think any Fandroids would be in there...
17. andro. (Posts: 1971; Member since: 16 Sep 2011)
Apple compliants forums no less,it'll be phonearena news posts or similar soon.Last years early complaints was for localised yellow spots,these complaints are yellow toning and tinting and washing out colurs throughout which is not glue,but faulty screen toning or software.
the battery gate is starting to hit the new big time as phonearena have picked up on!
25. roscuthiii (Posts: 1873; Member since: 18 Jul 2010)
14. EclipseGSX (Posts: 1653; Member since: 18 Oct 2011)
Way to steal my thunder :P anywho that 2nd link for the battery doesn't exist
18. andro. (Posts: 1971; Member since: 16 Sep 2011)
10. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)
hmm apple tech support is just next door, will see if its true
7. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)
how is it going sir?!! sooo gallito how are you liking your iphone 4s ??
22. msa1988 (Posts: 417; Member since: 30 Mar 2010)
I have the 4S and I have had none of these issues...
6. Sniggly (Posts: 7182; Member since: 05 Dec 2009)
Well, FINALLY Apple's iPhone 4 sales dropped (by about 3 million) from last quarter. About time.
They'll probably jump again when the January report comes out.
8. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)
idk sniggly competition is getting tougher and tougher for apple....
23. GoodFella (Posts: 112; Member since: 18 Oct 2011)
They just had a launch. Their numbers will at least jump this quarter.
24. remixfa (Posts: 14163; Member since: 19 Dec 2008)
they always have a rise and then fall as a new device is launched.. its just the nature of it. android's is constantly on the rise because of the constant influx of new devices. people dont need to wait for yearly upgrade cycles like iOS users do.
29. ardent1 (Posts: 1999; Member since: 16 Apr 2011)
Android devices are a dime a dozen. Anyone can buy a brand new android device at a fraction of the new iPhone 4S, other things being equal. But don't tell that to the village idiot of phonearena since that will be beyond his comprehension.
Nokia phones once dominated the landscape and look at Nokia now. Constant influx of dime a dozen devices doesn't bode well for android OEMs due to ROIC, which is related to gross margins.
11. ivanko34 (Posts: 617; Member since: 04 Sep 2011)
Samsung is going to help again apple to get more profit with top Samsung components as processors memory display 3g patents ideas stolen from touchwiz etc...
19. darac (Posts: 2156; Member since: 17 Oct 2011)
Down from 20.3 million to 17.1 million iPhones.. good job, apple. Keep it up.
and I understand why sniggly says they will jump up again..but I'm not so sure anymore.
if you just look a little past those 4 million initial weekend sales, things are looking very grimm for apple.
I expect that ballon to blow it self out very soon and very fast..faster then last Harry Potter's or Transformers' box offices.
If you get what I mean.
They will be lucky if they go over 20 million iPhones by the end of
this quarter imo.
30. ardent1 (Posts: 1999; Member since: 16 Apr 2011)
The 4 million bogey is just for the iPhone 4S. It speaks nothing about the iPhone 4.
For that quarter, Apple sold 17.1 million iPhones, which is an improvement from 14.1 million, in the year- ago quarter, respectively. Therefore, Apple sold 3 million more iPhones on a YOY comparison despite rumors of an iPhone 5 and deferring carriers.
20. snowgator (Posts: 3292; Member since: 19 Jan 2011)
Yes, stocks drop. That happens all the time. Really though- iPhone sales in trouble? The iPhone 4S will not sell as well as a iPhone 5 completely reimagined would, but it will happily blow past most devices out there, and the profit level on them will be so much higher due to the reuse of the existing body style. I do believe the pressure from high end Androids and either a stronger WP offerings from Samsung and HTC and really good Nokias and maybe even a resurgent RIM (okay, I made that one up.) will force Apple to really hit the next iPhone hard, but I do not doubt them for one minute. There will be no overall sales records for the iPhone 4S, but boy those single day sales were more than some devices yearly profits.
31. ardent1 (Posts: 1999; Member since: 16 Apr 2011)
That share is over $420 at market close and is enough to buy a number of brand new android devices.
32. darac (Posts: 2156; Member since: 17 Oct 2011)
@ardent, iPhone sales FELL quarter on quarter THIS YEAR.
20.3 million in second quarter, and 17.1 million in the third.
And that much of a fall NEVER happened since the iPhone exist.
It is because iPhone4 was already having a hard time keeping up with superior android phone onslaught, and because of people were holding back for the successor.
For the epic fail successor that the 4S is.
Mark my words, the sales of 4S are going to experience a steep, steep decline very soon.
And when you look at what android has to offer now, and during the next 3 quarters - three quarters that apple has to endure with this 4S - things are indeed looking very very grimm for apple.
Alarming, in fact.
If I were an apple shareholder, I'd sell mine right now.
33. ardent1 (Posts: 1999; Member since: 16 Apr 2011)
@darac, the compaison is YOY or commonly known as year-over-year and on that basis, sales are up 3 million. The reason for YOY is to avoid apples to orange comparison by avoid seasonality and other factors, etc.
The sequential decline has to do with timing of the iPhone 4S launch. That means sales shifted one fiscal quarter due to said timing. If you noticed, 4 million 4S phones has being sold during the 3 day launch weekend.