Apples Profit Hit 131 Billion

Apple's Profit Hit $13.1 Billion

While Apple remains the most valuable and among the most profitable companies, some analysts are concerned it is losing its edge and failing to keep up with rivals in the smartphone and tablet markets.

SAN FRANCISCO -- Apple (IW 500/4) said Monday record sales of iPhones drove revenues to new heights in the past quarter, resulting in a profit of $13.1 billion.

The tech giant said it had record quarterly revenues of $57.6 billion, helped by selling 51 million iPhones.

But Apple shares fell 5.7% at $519.15 in after-hours trade on a weaker-than-expected outlook ahead.

The company said it sold 26 million iPads during the quarter to December 28, also an all-time quarterly record, as well as 4.8 million Macs.

"We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, software and services," said Tim Cook, Apple chief executive.

"We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better."

While Apple remains the most valuable and among the most profitable companies, some analysts are concerned it is losing its edge and failing to keep up with rivals in the smartphone and tablet markets.

"Some of the shipments may be records, but Apple shares are taking it on the chin here. Sometimes great is not great enough," said Jon Ogg at 24/7 Wall Street.

Apple's outlook for the current quarter, its second fiscal quarter, were below forecasts at between $42 billion and $44 billion in revenue. Shares fell 5.7% at $519.15 in after-hours trade on a weaker-than-expected outlook ahead.

Apple has been facing pressure from billionaire Carl Icahn, which wants the company to boost the size of its share buyback to deliver more cash to shareholders.

Copyright Agence France-Presse, 2014

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish