Apple @ $422.24, +$2.25 (+0.54%).
Slightly worrying that Apple missed expectations for the first time since 2004 with 4th quarter sales revenue of just $28.34bn, yes that's $28.34bn!
This is a 28% increase on last years 4th quarter but, as analysts were expecting $29bn its still a miss.
And despite net profits increasing by 53% to $6.62bn it looks like the share have been punished in after hours trading with a fall of 6.4% potentially taking the shares down to $395.05.
Its worth saying that again though - sales are up by 28% but net profit has increased by 53%!
The detail suggests that the source of disappointment lies in the sales of iPhone 4 which, at 17.1m are a 21% increase on the year before but down on the previous record quarter where 20m were sold.
Personally, I find it disconcerting to read about "after hours" trading knowing that I can't do anything about it and wondering whether there will be a knock-on when markets re-open the next day. I don't know if this is actual dealing or just market makers adjusting prices to news ahead of market opening. If it is actual dealing, is this not just a diluted form of insider dealing?
Because there have been a number of significant events at Apple I guess that it is natural for investors and analysts to be a bit jittery.
I do think that the hype around the possible announcement of iPhone 5 and a cheaper 4S would have been enough to persuade some potential buyers to hold fire (remember this speculation has been ongoing for the last 6 months at least).
And, there is Christmas to think about and how many potential buyers (for a loved one), will be holding off for a Christmas purchase.
It is human nature after all.
On the first point, I guess it is a little old news now so I didn't post an update on the update on the update but Apple did.
And, what do you know, despite analysts being disappointed in the lack of an iPhone 5, Apple has sold 4m 4S's in the first 3 days of availability, double the records set by iPhone 4s.
So, perhaps when this announcement came out we were already looking into the future and that the numbers should be considered alongside the 4th quarter report as they have possibly had a material impact.
Its easy to be dragged along with the iPhone debate but, as the company makes these other products as well:
- iPad sales were 11.12m, up 166% on last year
- 4.89m Mac sold, up 26% on a year ago.
- But, as expected, iPods continue to decline with sales of 6.62m, down 27%.
So looking ahead we have the holiday season coming up, gross margins increased to 40.3% (last year 36.9%), and 63% of Apples 4th quarter revenues were international.
And, then there is iPhone 5 and iPad 3 to look forward to!
Related articles:
Earlier posts:
- Shares update: Apple's third quarter results. - Apple 2nd quarter update - profits up 95%!
- Apple update: Ipad 2!
- Is Android a reason to invest in Google?
- Globally Diversified Technology, Growth, and Hedge portfolio!!!
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