Apple Forecasts Sales Below Estimates; Boosts Dividend, Buybacks
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Bloomberg) Apple Inc (AAPL). reported its first profit decline since 2003 and forecast revenue that missed analysts estimates amid slowing iPhone sales growth and accelerating competition from Samsung Electronics Co. The iPhone maker boosted its dividend and share-buyback program.
Fiscal second-quarter net income fell 18 percent to $9.55 billion, or $10.09 a share, Cupertino, California-based Apple said today in a statement. Sales in the current period will be $33.5 billion to $35.5 billion, compared with an average prediction of $38.4 billion, according to data compiled by Bloomberg.
Growth is slackening for the iPhone, Apples biggest source of sales, as some customers opt for devices from Samsung and other device makers using Google Inc.s software. The disappointing third-quarter forecast indicates a dearth of new products before June, months later than the company typically debuts fresh gadgets, and it may weigh on a stock that has slumped 42 percent since September.
Slowing growth, competition and margin compression -- people are worried about all of them, said Shaw Wu, an analyst at Sterne Agee & Leach Inc. in San Francisco. Theyve made the fears look justified. ....................(more)
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http://www.bloomberg.com/news/2013-04-23/apple-forecasts-sales-below-estimates-boosts-dividend-buybacks.html