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

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