Apple Earnings Drop For Third Quarter In Row

Written By Unknown on Selasa, 29 Oktober 2013 | 11.46

Apple's fourth-quarter earnings have fallen 9% as more people opt for the company's lower-priced iPhones and iPads.

It is the third consecutive quarter that its earnings have dropped compared with the previous year.

Apple said it had sold 33.8 million iPhones, 14.1 million iPads and 4.6 million Mac computers between July and September.

iPhones sales were up 26% on the same time last year, but the cheaper 5C model has helped lower the average sale price of the handset.

Quarterly revenue was still a massive $37.5bn (£23.2bn) however, giving earnings of $7.5bn (£4.3bn).

That compares with $36bn (£22.3bn) and $8.2bn (£5bn) for the same time last year.

"Wall Street didn't like these numbers - they weren't enough," Fox business correspondent Dennis Kneale told Sky News.

"They are (also) a little concerned about the current quarter's outlook and with profit margins and what is happening there."

Argos My Tablet Argos' tablet is one of a growing number of cheaper iPad alternatives

Kneale added: "Here's the thing bothering Wall Street, profit margins a year ago 40%, this quarter only 37%. That's a little scary for Apple."

The 'budget' iPhone 5C was released last month and is seen by experts as an attempt to gain greater market share in the Chinese market, where cheaper Android-based handsets dominate.

Apple also faces more competition in the tablet sector, particularly from an increasing number of budget devices.

In the UK, Tesco and Argos are the latest retailers to have entered the market.

However, Apple now heads into the lucrative Christmas period with an updated iPad range and is predicting revenues of between $55bn (£34bn) and $58bn (£36bn) the next time it reports.


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