Apple's Earnings Fall Despite Rising iPhone Sales

Apple (Nasdaq: AAPL) reported quarterly numbers on Monday, Oct. 28, and although the tech giant has sold a record number of iPhones, profit has declined for a third consecutive quarter after a decade of steady growth.

Apple reported revenue of $37.5 billion and a net profit of $7.5 billion, or $8.26 per share. Fiscal fourth-quarter net income was $8.2 billion, or $8.26 a share, compared to $8.2 billion, or $8.67 a share, a year earlier. Apple's full-year profit came in at $37 billion, representing a first earnings decline in 11 years, but CEO Tim Cook claimed the "business was stronger than ever" during an earnings call, reports the Wall Street Journal.

Analysts were expecting the launch of two new iphones this quarter–the 5C and 5S–to account for larger earnings in the quarter, but that wasn't the case. The company has sold 33.8 million iPhones in the quarter, up 26 percent from 26.9 million in the same period last year. Investors are also concerned that iPad sales have remained flat with 14.1 million sold this quarter, in contrast to the 14 million it sold a year earlier.

Apple is optimistic about the upcoming holiday season, with a thinner and lighter version of the full-sized iPad, called Air, slated to hit stores this Friday, Nov. 1. An update to the iPad Mini with a higher definition display screen and a higher price is also scheduled to go on sale in November at a still-to-be determined date.

For more, see:
This FierceWireless article
This Wall Street Journal article

Related articles:
Apple's iBeacons To Let Stores Beam Location-Based Offers To iPhones
Apple Is Testing iPhone Trade-Ins In Its Stores Now
Apple Hires Levi's Retail Exec, But He Won't Run Retail
Apple Stores Stagnate During Fruitless Search For A Leader
Apple Store Associates Sue Over Unpaid Time For Searches

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.