Apple Shares Fall After Flat Earnings
Company's streak of big increases in profit ends
By Newser Editors and Wire Services
Posted Jan 23, 2013 4:55 PM CST
Apple CEO Tim Cook in a file photo.   (AP Photo/Eric Risberg, File)

(Newser) – Apple's profit surge halted in the latest quarter, as a flood of new products such as the iPhone 5 meant high start-up costs for new production lines. Apple posted net income for the October-to-December quarter that was flat with the year before. It was the first time in years that Apple didn't post a double-digit earnings increase. The report also made clear that Apple is no longer able to sustain the breakneck sales increases of the last three years, even with a fresh iPhone on store shelves. Apple shares fell $31.70, or 6.2%, to $482.31, in extended trading, after the release of the results.

Net income in the fiscal first quarter was $13.1 billion, or $13.81 per share. That still beat expectations, as analysts polled by FactSet had forecast earnings of $13.48 per share. Revenue was $54.5 billion, up 18% from a year ago. Analysts were expecting $55 billion. "The revenue number is dismal as far as what the expectations were," says Jeff Sica of SICA Wealth Management. But he added that while it's an "incredible number" on its own, Apple has "fallen victim to the curse of high expectations."

  • Apple shipped 47.8 million iPhones in the quarter, about 1 million less than analysts were expecting, and 22.9 million iPads, also about 1 million short. Both were record numbers, however.
  • Looking ahead, Apple said it expects sales of between $41 billion and $43 billion in the current quarter, which ends in March.

Copyright 2016 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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Showing 3 of 14 comments
Jan 24, 2013 8:52 AM CST
Apple products always have been and will always be WAY over priced. Garbage.
Jan 23, 2013 10:00 PM CST
Apple is Crapple.
Jan 23, 2013 9:06 PM CST
Unlike Microsoft, Apple is actually not making too many mistakes. But here are two big mistakes Apple made. 1, scratches on aluminium iPhone5 surfaces. 2. The Apple Store's unauthorized deletion of people's applications and media on their iPhones. If Apple and book publishers are having legal problems with each other, the book should not be deleted from people's iPhones. If it is free software that needs an update, the software app should not be deleted until the user gets the update. This is a serious problem and if Apple doesn't listen, they will fail as Microsoft failed. I didn't buy a Mini. I bought a Nexus-7 Android and not one app or media file has been deleted.