Apple Sales Gain Slowest Since ’09 as Competition Climbs

[marmar]

(Bloomberg) Apple Inc. (AAPL) plunged in European trading after posting the slowest profit growth since 2003 and the weakest sales increase in 14 quarters, as higher costs and rising competition made it harder to sustain revenue expansion.

The company dropped 8 percent to 352.34 euros ($469.39) in Germany after saying that profit rose less than 1 percent to $13.1 billion, or $13.81 a share, in the period that ended Dec. 29. Sales rose 18 percent to $54.5 billion, falling short of $54.9 billion, the average analyst estimate compiled by Bloomberg. Analysts had predicted profit of $13.53 a share.

Apple also fell as much as 11 percent in late New York trading yesterday as the results underscored the rising costs of product overhauls amid competition from Samsung Electronics Co. (005930) in the saturating smartphone market. Even as Chief Executive Officer Tim Cook guided Apple to record revenue and iPad and iPhone sales, investors worry about management’s ability to keep producing hit products more than a year after the death of co- founder Steve Jobs.

“People are concerned about how quickly sales are falling off after the initial product launches and whether the company can deliver new and interesting products to reignite growth,” said Walter Piecyk, co-head of research at BTIG LLC in New York. ................(more)

The complete piece is at: http://www.bloomberg.com/news/2013-01-23/apple-s-holiday-sales-miss-predictions.html

[Esse Quam Videri]

1. I was an iPhone user who switched to the Galaxy S III last fall.

Absolutely no regrets on my part. The S III is a great phone and my most favorite thing is that you can turn your bluetooth on and off with one swipe from the home screen - no having to go into settings and navigating through to other screens.

[tridim]

2. I'm hearing die hard Apple fans complaining for the first time since 1979. It's a good thing.

Not that I want Apple to die, it's just good to hear that the cult mentality seems to be finally breaking down.

Apple is a giant corporation, they make products and they make profits, they don't love you.

[onehandle]

3. Translation: Most profitable return for any company ever, for the most profitable company ever...

...and the stock takes a hit.

The Stock Market is run by morons.

[marmar]

4. "The Stock Market run by morons. "

You'll get no argument from me on that point.

[Berserker]

6. Apple has got away with

Gouging their customers for years. While the apple zombies have been paying through their ass for products Android customers have been laughing. All that apple came up with for Christmas was to down size their over priced tablet and expected the hordes to support this Idiocy. As for the market it sure has been profitable buying puts!

[frylock]

10. and now they want to downsize their iphone 5!

and people will still wait in line for that crap.

[Libertas1776]

7. It was my fault...

I bought, for the first time ever, an apple product this xmas season. Now when a Joe Schmo like me buys an apple product, you know it loses its caché. To paraphrase Groucho Marx, I wouldn't buy from any company that would have me as a customer

[cbdo2007]

8. Apple actually seems like a pretty good buy at $450....might pick up some for a quick turn around.

[Berserker]

9. Be careful

There is gap support between 425 and 431