Apple hails results but outlook knocks stock price

Published on Jan 24, 2013
10:40 AM

SAN FRANCISCO (AFP) - Apple shares slid about 10 per cent Wednesday after the tech giant posted record profits and sales of its iPhones and iPads but offered a disappointing forecast for the coming months.

Apple said it made a profit of US$13.l billion (S$16 billion) on revenue of US$54.5 billion in the fiscal quarter that ended on December 29 as sales of iPhones and iPads set quarterly highs.

"Apple's profit did go up; it just didn't go up that much," said analyst Rob Enderle of Enderle Group in Silicon Valley.

"They had a really high increase in sales, but their high margin is coming apart at the edges and that is why investors are fleeing the stock," the analyst continued. "They are making less per gadget." The California-based company reported that it sold 47.8 million iPhones and 22.9 million iPad tablet computers in the closing months of last year.

Source: straitstimes.com