Apple has just announced its financial results for its fiscal 2012 third quarter ended 30 June, 2012. Profits missed analysts’ predictions.
Major news agencies reacted negatively towards Apple’s quarterly results.
Compared to analysts’ predictions for a profit of $10.37 a share on revenue of $37.2 billion, net income was reported as $9.32 a share on sales of $35 billion.
“Apple’s profit and sales fell short of analysts’ projections for only the second time since 2003 as customers held off on iPhone purchases while waiting for a new model to be introduced later in the year,” reported
Bloomberg today.
The major news agencies don’t seem to have taken the results in positive light.
The consensus seems to be that customers are holding off on iPhone purchases in anticipation of a new model, which is expected to be introduced later this year.
Shares fell some 6 percent in late trading.
This is the first full quarter of sales for Apple’s latest iPad, which was released in March.
Note the 84% growth in iPad sales over the same quarter last year.
Some 17 million iPads were sold in the quarter alone!
| Sales growth this quarter |
| Device |
Number of units sold |
Compared to year-ago quarter |
| iPhone |
26 m |
28% |
| iPad |
17 m |
84% |
| Mac |
4 m |
2% |
| iPod |
6.8 m |
-10% |
It’s interesting to note the 10% decline in iPod sales.
It is an indication that it may be made redundant by the proliferation of smartphones which can fulfil the functions of a mobile personal music player cum entertainment device.
On the other hand, Sony is still launching new models in its rejuvenated Walkman media players cum entertainment devices.
Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock.
“Apple disappointed analysts despite reporting profits up 21% year-on-year to $8.8bn (£5.6bn) and revenues up 23% to $35bn, after missing targets that Wall Street had forecast,”
Guardian reported.
The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.
This continues Tim Cook’s announcement in March to pay dividends – something that Apple had not done in 17 years until then.
The dividends are estimated to cost Apple about $10 billion a year.
Apple has around $100 billion in cash which many investors have called over the years to be returned to investors.
