At Apple’s Q4 earnings call held yesterday, the company revealed a quarterly profit of $7.5 billion owing the maximum to its soaring iPhone sales. However, people opting more for the lower-priced iPhones and iPads led to decline in company’s quarterly earnings by around 9 percent as compared to last year.
The iPad maker reported a net annual profit of $37 billion in the quarter ending September 28, which though being an impressive profit figure, was Apple’s first annual earnings decline in 11 years. This is for the third time in a row that Cupertino’s company’s fiscal quarter earnings have dropped from the previous year.
Apple reported record sales of 33.8 million iPhones, while iPad sales went up to 14.1 million from the 14 million sold during the same quarter last year.
The company’s investors who were hoping for better results in the previous quarter are now more optimistic of the current quarter results with the holiday shopping season coming closer. The management expects the company’s revenue to increase from $55 billion to $58 billion in the quarter ending in late December.
After the sales and revenue figures were disclosed on Monday, the iPad maker’s stock dropped $11.09, or 2 percent, to $518.79 in after-market trading.
With Apple launching new devices including a slim iPad Air model and an improved iPad Mini recently, it will be interesting to note whether Apple has succeeded in meeting with expectations of its customers or not.
Tim Cook also revealed during the earnings call that they never really intended or looked at the iPhone 5C as a low-cost iPhone rather the iPhone 4S is the entry level model now.
