October 26, 2012

Apple (AAPL):Earnings Lower Than Expected


Apple Inc. (NASDAQ: AAPL), the world's most valuable company, reported lower than expected fourth-quarter earnings Thursday because its having trouble keeping up with demand for its market-leading products.Inventory issues have reportedly affected iPhone 5 sales, struggling to keep up with orders.
The company sold 26.9 million iPhones in the last three months, up 58 percent in the same period a year ago. The company sold 14 million iPads, up 26 percent, and 4.9 million Macs, a 1 percent unit increase. The company sold 5.3 million iPods, a 19 percent decline from a year ago
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"We're very proud to end a fantastic fiscal year with record September quarter results," Tim Cook, Apple's CEO, said in a statement. "We're entering this holiday season with the best iPhone, iPad, Mac and iPod products ever, and we remain very confident in our new product pipeline."

Apple's "pipeline" of manufacturing and distribution will be key in the next coming months during the holiday season, which is traditionally the best quarter for the tech company and many other retail companies.

Apple earned $35.97 billion in revenue, slightly higher than the $35.80 billion some analysts expected. Meanwhile, it's earnings were $8.2 billion, lower than expected.

Shares of Apple closed down 1.14 percent to $609.80 a share at the end of regular trading.

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