Apple iPhone sales last quarter failed to meet expectations; company earns $13.1 billion profit

Apple iPhone sales last quarter failed to meet expectations; company earns $13.1 billion profit
Apple's shares are down over 7% in after-hours trading after the company reported fewer sales than expected of the Apple iPhone during its fiscal first quarter. While Wall Street analysts were calling for Apple to sell 55 million units of its iconic smartphone in the three month period ending in December, the company reported sales of 51 million units.

Apple reported net profits of $13.1 billion ($14.50 a share) on revenue of $57.6 billion. Revenues topped estimates for $57.5 billion. Profit margin, though, declined to 37.9% from 38.6%. In addition, the company forecast sales in the range of $42 billion to $44 billion for next quarter. Analysts had expected $46 billion thanks to the deal with China Mobile. The world's largest carrier is now selling the iPhone for the first time. Wall Street is looking for the deal to add 11 million more iPhone sales to Apple's fiscal 2014 total.

In the quarter, Apple sold 26 million Apple iPads, up from the 22.9 million sold in the same quarter last year. According to Apple CFO Peter Oppenheimer, Apple saw strong growth in emerging markets like Russia, China and Latin America. Apple iPad sales doubled in Mainland China, the executive said.

source: Reuters, USAToday

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57 Comments

44. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

Fandroids Apple hate kills me. 99% of Apple hate is based on nothing factual. Business 101. Make a product that people want to buy, then sell as many of them as possible, at full price. HTC, Sony, LG would love to sell 51 million phones in 3 months.

41. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Obviously another total fail by Apple to not match and even exceed analysts' expectations. I have a good mind to liquidate my shares! /s

40. nctx77

Posts: 2540; Member since: Sep 03, 2013

Every year I see Apple break records and Wall Street is disappointed lol! Look at the title of this article. It's basically an oxymoron.

36. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Every dog has its day. Every day has its way of being forgotten. This is not the first time Apple has failed to meet expectations, but then again, they couldn't keep up ridiculous growth forever. The smartphone market in the areas Apple went after has been reaching saturation. Google and Microsoft are playing it smarter by going after the great masses that don't have smartphones yet. For the record, Apple could fail miserably at sales and survive, possibly through the next century. They have one of the biggest cash windfalls in the history of business, and we all know that they wouldn't fail consistently for 100 years. Though it is sweet to see that the 5c/5s strategy hasn't quite panned out like they wanted it to. :)

38. domfonusr

Posts: 1106; Member since: Jan 17, 2014

Perhaps it has not panned out entirely as the analysts saw it panning out, but it's still not all bad. You are right that Apple cannot have insane growth forever - many analysts predicted continued insane growth, and got ahead of themselves. However, they are still growing. Just not at as insane of a pace as before. Apple's customers still have a super-high loyalty in the US and a few other places, and so the sale of Android devices often become a gateway to later buying an iPhone. I know quite a few people who have started with an Android device, and then progressed to iPhones and stayed loyal to Apple ever since. I don't know anyone who has gone the other way. As long as the loyalty level of the average Apple customer stays considerably higher than that of the average Android owner, this imbalance will help to drive Apple sales even when general smartphone saturation is truly reached in the US.

43. Sniggly

Posts: 7305; Member since: Dec 05, 2009

*You* might not know any who have gone iPhone to Android and stayed there. I do, however. Experiences differ from person to person. Apple isn't perfect by far, and it's well known how polarizing iOS 7 has been, especially in its destruction of the experience for older iPhone users. Slowing growth shouldn't be ignored either. Like I said, Apple could suddenly fail for a long time before dying, but that doesn't mean that if the signs are there of an eventual decline, they SHOULD fail for a long time. I mean, look at Blackberry. They rode on their prior momentum and refused to change what they were doing until it was too late.

45. domfonusr

Posts: 1106; Member since: Jan 17, 2014

Yes, I don't, but I don't doubt that there are some out there who have done exactly as you have said. I just don't know any of them. I just live in a place that is really unusually skewed in that way. Apple is great for a lot of people, but not for everyone by any means. I don't think, for all my admiration of certain elements within the iPhone experience, that I would actually ever buy one. There are other parts of that experience that are very disappointing to me. And I know full well that the iPhone is not perfect. I would not pretend that it is, though others do from time to time. I would never tell anyone to ever ignore slowing growth. I was only saying that slowing growth was not the entire picture... as with all things, the truth of what is going on does not hinge on just one metric alone, but rather is a combined picture of all possible metrics. Apple has plenty of momentum going right now, and although they could produce something that really is reminiscent of a steaming pile of crap (this is always a possibility - it is just a matter of how many people give in to their pride and say "how beautiful!", as opposed to how many people shake off their pride and cut them loose), it will only knock them down for as long as they are unwilling to change. As for BlackBerry, I am not totally sure that it is too late for them. It may be too late for the US mobile market, but not for some emerging markets where they could hang on and survive for long enough to bounce back a little, at least to the point of feeling more financially secure. They also have other product lines that may hang on a little better here in the states, like their BES offerings, or monetized BBM apps, or their upcoming in-car QNX implementations. Is there still value in them? Who knows, but that is a decision each consumer must make, and I'll bet there are some who will still perceive value in some of their offerings.

34. kevkyle

Posts: 104; Member since: Oct 21, 2012

Haha.....dogfight!.......just phones and it's like WW3.....Cool down folks", )

28. alrightihatepickingusernames

Posts: 474; Member since: Dec 29, 2013

Only 13.1 billion? Cmon Apple step up your game.

19. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Bias aside as much as possible.. Them are impressive numbers. With that said, the slight decline may be minimal, but is concerning to some and perhaps an indicator of future trends with product currently sold. Larger screen will immediately turn these numbers around no doubt. Its like the numbers are forcing them to make big screen phone like others do. I have to ask, how is it a premium product without peer if I still see threads about force close and crashing going on, that seems so 2010... is it honestly the facade of premium that holds this standard incorrectly high? I have not, repeat not had a force close or crash or reboot on kit Kat period. So yeah..

20. AfterShock

Posts: 4147; Member since: Nov 02, 2012

I suspect Ifans troll alarms must ringing off the wall by now..

27. bucky

Posts: 3797; Member since: Sep 30, 2009

Lol the thing is, there aren't any hardcore apple fans anymore that you fandroids keep referring to. Android fans are now the old apple fans lol

49. Topcat488

Posts: 1424; Member since: Sep 29, 2012

Maybe people live and learn.. Android fans are now the old apple fans lol Maybe people live and learn..I surely did.

52. domfonusr

Posts: 1106; Member since: Jan 17, 2014

I've been noticing that since rejoining here. When I was here before, a year or two ago, I was always debating madly with the fanatical iPhone fans, and now it seems that it has swung the other way during my absence. Strange...

55. Topcat488

Posts: 1424; Member since: Sep 29, 2012

I for one was a iphone fanatic, but i got tired of waiting for Apple to put out 1 phone a year. They could have put out phones of different sizes a long time ago. Android had sooooo many different phone styles and sizes from OEM's that now Apple is my quick go to phone only. Samsung Note is my "Main" do more phone.

57. domfonusr

Posts: 1106; Member since: Jan 17, 2014

That's funny. I started out as an Android defender and sympathizer, though only owning Nokia Symbian handsets... now, even though I'll never own an iPhone, I'm not so much of a fan of Android either. I went the other way. I just got gifted to me a used Android handset that I cannot activate as a phone because it is on the wrong service... or I am on the wrong service... whatever... but I just don't know if it will bring me back to the Android fold completely. In the meantime, my main phone is actually a 'dumb phone' (hence my screen name). I ended up selling off as many of my old Nokia's as I could (sheriff's sale), and recycling the ones that couldn't be sold... they got a combined $40 for the two that sold... big disappointment.

17. superduper

Posts: 151; Member since: Oct 20, 2013

What kind of miracles do people expect from Apple?! It has delivered the results of its best quarter ever, in which its iPhone, iPad, and even Mac sales rose, but it still "failed to meet expectations". These are the fourth biggest quarterly earnings of any company of all time: http://en.wikipedia.org/wiki/List_of_largest_corporate_profits_and_losses#Largest_Corporate_Quarterly_Earnings_of_All_Time Every other company in the table is an oil company. Still not good enough. Go figure!

16. zuckerboy

Posts: 898; Member since: Dec 22, 2011

lol 50 millions almost everybody hates apple but it manages to sold millions

14. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

Analyst are never wrong so to speak....they just lie to the public. Name one analyst that took it on the chin.....not many. Their job is to make uninformed investors take a leap of faith. Had anyone checked the AAPL chart they would see that 702.00 was a wave 5 top. Apple retraced to the break out fib 375-385. Apple caught support by the big investors at the 380.00 range and broke out to the upside, and caught major resistance at the 575-580 resistance. Many analyst have given false data about Apples sales in the last month. Now they pull the plug and if this is an ABC correction it could test 385.00. It will stop at 560, 545 535 525 515 505 and if it fails there it will test 485 45 425 then 385. This all depends on what the market does, and whether or not future orders tank. If iPhone 6 does not wow the public the stock will tank. They iPhone 5C failed miserably no matter what anyone says it did not take away dales from Android. Growth for Apple has slowed tremendously enough to cause the major investors to bail.

11. taz89

Posts: 2014; Member since: May 03, 2011

Well no surprise analyst never happy when they are wrong. Not apples fault that they predicted wrong lol. Also no surprise with Increased sales of the iPhone etc, apple have been I'm guessing allowing other retails now discount iphones etc offering deals etc so no shocking.. Lol analyst always crack me up.

10. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

I'm so mad at Tim Cook for "only" selling a measly, pitiful, horrible, deplorable, lowly 51,000,000 phone in just on qtr I'm On my way to Cupertino as we speak. When I get there, I'm challenging him to a hop scotch contest, and a game of 21. Mr. Cook how dare you only sell 51,000,000 iPhones in "only" one qtr. you mean to tell me you couldn't even muster 51,000,001? I'm done with apple, I'm now to be called antiapplejediihatesmrcookandapplefornotselling5100​0001iphonesinoneqtrmaygoddamnualltohellforthiscrap​. I hate u apple sniggly, apple4never, droidxdoug reckless, artsim98 I'm now one of u, an apple bashing/hating troll devoting my day and life to hating apple. Mxy bucky sauce gallitoking taco and darkkjedii don't ever speak to me again. Apple has crossed the line with this milestone errr failure. I'm boiling at this accomplishment errr failure by apple. Mxy get my I love errr hate apple T shirt ready. I'm the new finalflash, totally devoted to hating apple and having no life other than that. DAMN U COOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO​OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO​OOOK

12. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

And one more thing Mr. Cook, you are no longer on my Xmas list, and I don't think you're a very nice guy. How do you like that Mr. Cook. PS. I just microwaved my 5s and will coat my note 3 in the gold that's left over. Sniggly I await your orders.

33. domfonusr

Posts: 1106; Member since: Jan 17, 2014

Just let us know how the hop scotch contest goes. I fear that your hatred will cause you to stumble, or suddenly collapse, or that you might pop a vein in your forehead in a moment of anger, so I have a hefty wager riding on the hop scotch victory of Tim Cook! jk

35. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Why are the Apple fans having strong reaction to this news. Share price goes up and down on regular basis. To me its a good time to buy. Ican might success in canceling some excess share bringing more value to the share owners.

47. EclipseGSX

Posts: 1778; Member since: Oct 18, 2011

lol calm down. Are you off your medication or something?

51. domfonusr

Posts: 1106; Member since: Jan 17, 2014

Medication or no medication, I just can't wait to hear about the results of the hop scotch death match between darkkjedii and Tim Cook...

53. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Dude I won lol. We played best of 5, I beat him 3 to 1. I'm now apples CEO. The next iPhone comes out Friday with a 7 inch screen, 5,000 hr battery, no cameras, and no processor, and only color is green. Oh yeah it's $17,000 on contract.

54. EclipseGSX

Posts: 1778; Member since: Oct 18, 2011

You just described the iPhone 10

56. domfonusr

Posts: 1106; Member since: Jan 17, 2014

... but... but was blood spilled?

9. Miracles

Posts: 560; Member since: Aug 31, 2013

So Apple top sales in the US by 43% and fail to meet expectations. Hmmm..so whose topping in other countries? (specially europe?)

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