Apple Blames Rare Miss on New iPhone Anticipation

The company’s results fell short of Wall Street’s expectations due to worsening situation in European economy and a pause in iPhone sales ahead of a new version.

Apple Inc shares fell more than 5 percent and now are estimated at $570.81 in late trade after the Cupertino based company reported its second quarterly miss in less than a year. Photo: digitjet/Flickr

However, Apple’s suppliers don’t have good news as well. Shares of LG Display, Toshiba and Hon Hai stopped between 5 and 7 percent.

The rare miss means that the Apple brand is losing its resistance to the economic and product cycles that have plagued rivals, writes Reuters.

“Clearly it was a disappointment,” said Channing Smith, Co-Manager of Capital Advisors Growth Fund.

“We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S,” he added.

The iPhone maker did post a 23 percent jump in revenue from the same period of the previous year to $35 billion, but that was about $2 billion below Wall Street’s average forecast.

Net income is estimated at 21 percent from 2011 to $8.8 billion, or $9.32 a share, about 10 percent below expectations.

From the previous quarter, sales fell 22 percent in Asia-Pacific, outstripping a 3 percent to 6 percent drop in the Americas and Europe.

It’s the second time since 2003 when the company has missed profit and sales estimates. This time it can be explained by customers delaying iPhone purchases ahead of a new version.

“Apple is in that rarest of all positions where the Street will punish them for anything less than an excess of success,” CCS Insight analyst John Jackson said.

He went on, adding: “If there’s a positive spin on the iPhone story, it is one of latent demand.”

Meanwhile, Samsung’s Galaxy is predicted to eclipse iPhones. Analysts suggest profit from Samsung’s phones sales have more than doubled when compared to the previous year, with sales of around 50 million smartphones in the June quarter.

Apple iPhone fans are expecting the Cureptino based firm to launch a completely redesigned device that will feature a bigger screen, rather than just add or change a few features as it did with the current model.

“It really is the iPhone company. The iPad is not strong enough to beat numbers,” said BGC Partners analyst Colin Gillis.

“The iPhone 5 is already the most hyped device and for it to exceed expectations is going to be really hard.”

Net income climbed 21 per cent to $US8.82 billion, or $US9.32 a share, in the period that ended June 30, Apple said today in a statement.

According to recent reports, analysts had predicted profit of $US10.37 a share. Even as Apple outgrew many of its technology-industry peers, its sales came in at the slowest pace since mid-2009, writes Brisbane Times.

“Every quarter that Apple isn’t launching a new iPhone it’s a transition quarter,” said Brian Marshall, an analyst at ISI Group. “That’s the key product that matters.”

The company has sold 26 million of iPhones compared with 28.4 million, the average prediction of 19 analysts surveyed by Bloomberg.

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