Tuesday, January 28, 2014

Disappointing Sale On IPhones Plunge Apple Deeper, Though Executives Are Still Excited

Image representing Steve Jobs as depicted in C...

Image via CrunchBase

Apple has fell short of the expected quarterly earnings  for iPhone, despite what their analysts expected. In effect, the stocks have downed 5% in after-hours stock trading. The company has sold close to 51 million handsets in the 1st quarter of this fiscal year, and despite it being a record high (up from 47 million), analysts now say that the company has not exceeded its expectation of 55 million as predicted.

Tim Cook, Apple's CEO is still excited about the sales, saying that their main aim is to satisfy the desires of their customers and making services more effective for them. The second quarter may have the company have revenue return of $42 billion according to Apple, but analysts think otherwise. The confidence from Peter Oppenheimer, its chief finance officer, stems from his approval of the company's new performance track record. He says that today, manufacturing issues that were being experienced some years back have been ironed out.

However, Apple has seen its company experience a slight revenue move upwards to $57.6 billion, though not so much has been made in terms of profits.

Stocks for this giant smart phone powerhouse were estimated by analysts to be worth $14.09 per share. Some of the reasons why some disappointment has been experienced of late include the fact that iPhone 5s and 5c are not doing too well with the customers. In addition, China received shipments of the iPhones at the same time with the rest of their global customers. 

Principle analyst Moorhead suggests that though the company has not seen an increase in profit margins, the amounts in terms of revenue and sold phones that are being talked about are enormous. With 26 million sold iPads, up from only 22.6 the previous year, Apple expects that the December quarter will see 24.6 million gadgets sold.

Stocks closed at $19.97, a down of 5.6% from $30.53.

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