Apple's earnings fall despite rising iPhone sales

[Omaha Steve]

Source: AP-Excite

By MICHAEL LIEDTKE

SAN FRANCISCO (AP) - Apple's quarterly earnings are still sagging even as sales of its iPhones are rising, a vexing phenomenon feeding investor worries about whether stiffer competition in the mobile device market will continue to undercut the company's prosperity.

The fiscal fourth-quarter results announced Monday closed the books on a sobering year that saw Apple's market value plunge by about 25 percent, or about $160 billion. Apple Inc. (AAPL) remains the world's most valuable company, despite the downturn.

The company's earnings have been shrinking along with its share of the smartphone and tablet computer market that Apple reshaped with the 2007 release of the first iPhone and the 2010 introduction of the iPad. Apple hasn't come up with another breakthrough product in a new category since then, raising questions about the company's ability to innovate following the death of co-founder and chief visionary Steve Jobs two years ago.

Apple's earnings have now fallen from the previous year in three consecutive quarters after a decade of steady growth.

FULL story at link.


Read more: http://apnews.excite.com/article/20131029/DA9NFNNG0.html

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In this Sept. 20, 2013 file photo, Managers Ju Lee, left, and Brad Deep get iPhone 5s and iPhone 5c phones ready for sale on the day of their release, at a Best Buy in Atlanta. Apple’s quarterly earnings are still sagging even as the sales of its iPhones are rising, a vexing phenomenon feeding investor worries about whether stiffer competition in the mobile device market will continue to undercut the company’s prosperity. (AP Photo/John Amis, File)

[cosmicone]

1. Proves Android is better

and Apple's gestapo strategy to destroy Adobe Flash websites was pathetic.

[onehandle]

3. Adobe gave up on Flash on mobile devices and is pushing HTML 5, exactly like Apple wanted.

And proves Android is cheap, you mean.

[cosmicone]

6. Adobe did it because it had no choice

and who is fascist apple to force another popular product out?

In a few years, Apple will be a "has been" company like Blackberry. They may be flying high now but the innovative momentum is with Android and Samsung.

One can see it in the growth of the number of apps available on Android vs growth in Apple apps. Just 3 years ago, Apple had 7 times more apps -- now they are about even ... just extrapolate this curve in the future!

iPhone 5C will be a dismal failure and cause massive losses. Mark my words.

[onehandle]

7. LOL!

Apple sold 33.8 million iPhones over the last quarter. iPhone profit alone makes them the most profitable company in the world.

You seem to live in 1997.

[cosmicone]

8. Way more Samsung Galaxy S3 and S4 phones were sold during that time.

Galaxy S4 is now the gold standard.

Apple is for people who need a button for everything and are tech-challenged.

[onehandle]

9. iPhone 5S is No. 1 at all U.S. carriers; 5C is No. 2 or 3

http://tech.fortune.cnn.com/2013/10/06/apple-iphone-5c-canaccord/

Your misinformation is getting tiring. Goodbye.

[cosmicone]

10. That is US data -- don't be so myopic

Look at international sales.

[onehandle]

2. Check back in after 'iPad Christmas.' And the 'innovation' thing is silly.

Innovation is about improvement. Which they do constantly.

The word should be 'revolution.' And according to the the timeline of Apple, they are not due for another for several years.

Oh, and Apple sold 33.8 million iPhones over the last quarter. iPhone profit alone makes them the most profitable company in the world.

[Paulie]

4. Yes their margin is shrinking a bit.

But some other quotes from the same article:

Apple's earnings have now fallen from the previous year in three consecutive quarters after a decade of steady growth.

The Cupertino, Calif., earned $7.5 billion, or $8.26 per share, during the three months ending Sept. 28. That compared to income of $8.2 billion, or $8.67 per share, last year.

The latest quarterly earnings topped the average estimate of $7.92 per share among analysts polled by FactSet.
Revenue rose 4 percent to $37.5 billion - about $600 million above analyst predictions.

And there was no new products during the last quarter, except the final week or two when the new iPhones launched. New mini is next month and new iPad Air is this Friday. And the holiday quarter is usually the strongest.

So title should be more like "AAPL Profits dip, crazy income and growth continues."

[PoliticAverse]

5. Steve Jobs is dead. n/t