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Good news and bad news for Apple -- iPad sales were up this quarter, but iPhone sales were
down, causing Apple's shares to drop by more than 7% in after-hours trading.
In an earnings call with CEO Tim Cook, the electronics company reported earnings of $13.1
billion, or $14.50 a share. But even with record sales of their iPhone, Apple missed
the mark at 51 million sold instead of what analysts predicted: 55 million. (Via YouTube
/ Apple SaveFrom.net )
And how do record sales missing the mark translate to a drop in shares? Well, a reporter at Businessweek
put it this way:
"The iPhone sales over the holidays indicate that demand may be ebbing for new models of
the high-end smartphone — which is Apple's primary revenue source — as competitors
flood in with new handset and tablet offerings."
Apple did do well with their tablets, though, giving investors what one writer at Forbes
calls an "iPad Christmas." She goes on to say that the company needed the boost, "since
demand for its tablet was muted last year as customers waited for new models to arrive
and competitors ... introduced lower-priced, Android-based rivals."
So does the drop in shares spell trouble for Apple? Unsurprisingly, the company doesn't
seem to think so.
In a statement, Cook said, "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." (Via San Francisco Chronicle)
CNET remained somewhat positive as well, saying the iPhone 5's late debut — and even later
introduction in China — made it harder for sales to keep up with analysts' optimistic
projections. (Via CNET)
Apple's iPod struggled as well, selling just six million units in the final three months
of 2013.