Apple Inc. (NASDAQ:AAPL) Results Get Mixed Response

Posted by Ryan Mandell October 29, 2013 0 Comment 710 views

On Monday, October 28, 2013 Apple Inc. (NASDAQ:AAPL) announced its 4Q13 results with not so exciting figures that were expected because of magical sales figures of its newly launched iPhone 5S and iPhone 5C during the September quarter.  The expectation was also raised by Apple itself which earlier announced that its revenue and margins could click around the higher end of its forecasts.

The company reported sales of 33.8 million iPhones during 4Q13 much in line with and towards the lower spectrum of analyst expectations for sales of 33 to 36 million. It sold 14.1 million iPads during 4Q13, comparable to 14 million iPads sold during 4Q12. The sales of Mac computers, as with the declining trends in personal computers, declined to 4.6 million during 4Q13 compared to sales of 4.9 million during 4Q12.

The company reported overall revenue of $37.5 billion, beating the street expectation of $36.8 billion. However the earnings per share continued to decline for the third consecutive quarter with earnings reported at $8.26 per share. The analysts’ anticipated an average earning of $7.94 per share. Gross profit margin for 4Q13 remained at 37% compared to 40% reported during 4Q12, as the strife competition in smartphone segment from Samsung Elect Ltd (F) (OTCMKTS:SSNLF) remains continue. Gross profit margin is quite comparable to analysts’ average expectation of 36.9%. The company reported cash and cash equivalents and short- and long-term securities at $146.8 billion as of September 30, 2013.

Sources believed lag in demand for Apple’s cheaper iPhone 5C, raising concerns about the company’s market positioning in the smartphone segment and its competitiveness amidst the growing market shares of low-cost rivals.

The Chief Executive Officer at Apple, Tim Cook gave a positive outlook for the upcoming holiday shopping season and identified it as a crucial time for the company as it plans to take on against its arch rivals, Inc.(NASDAQ:AMZN)’s Kindle Fire and Google Inc. (NASDAQ:GOOG)’s Android based devices through its new iPads and iPhones.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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