Apple's 23% Sales Boost Not Good Enough For Wall Street
July 24, 2012 at 2:57 PM (PT)
After announcing that its second quarter 2012 net income increased $21% to $8.8 billion and sales revenue rose 23% to $35 billion, APPLE saw its stock price drop 5% in late trading because WALL STREET analysts expected the company to make even more money. BLOOMBERG reports that analysts expected APPLE to make $2 billion more in the quarter.
The main culprit for APPLE's "under-performance " had to be the iPHONE whose sales of 26 million was lower than the previous quarter's 35 million. Analysts believe customers held off on iPHONE purchases while waiting for the new iPHONE5 that's expected to be launched later this year.
"Every quarter that APPLE isn’t launching a new iPHONE it’s a transition quarter," ISI GROUP analyst BRIAN MARSHALL said. "That’s the key product that matters."
APPLE had absolutely selling one of its "newer" toys, the iPAD, whose sales rose from 9.25 million last year to 17 million in the most recent quarter Sales of the MAC -- including the new MAC book Air and Pro, hit 4 million, while 6.8 million iPODs were sold.
Big-picture perspective: Today's disappointing earnings report prompted APPLE shares to fall to $600.92 at the close of trading, trimming its year-to-date gain to a mere 48%.