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| Version 4 | Version 5 |
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| Apple's profit beats estimates as iPhone sales surge | Apple's profit beats estimates as iPhone sales surge |
| (about 17 hours later) | |
| Shares of computer and smartphone maker Apple rose nearly 5% in after-hours trading after it reported better-than-expected profits for the third quarter. | Shares of computer and smartphone maker Apple rose nearly 5% in after-hours trading after it reported better-than-expected profits for the third quarter. |
| It made $6.9bn (£4.5bn) profit in the three months to June, thanks in part to good sales of its iPhone smartphone. | |
| Apple said it sold 31.2 million iPhones, a record for the June quarter, compared to 26 million last year. | Apple said it sold 31.2 million iPhones, a record for the June quarter, compared to 26 million last year. |
| But profit was down 22% from the same period a year earlier as its profit margins shrank to 36.98% from 42.8%. | But profit was down 22% from the same period a year earlier as its profit margins shrank to 36.98% from 42.8%. |
| However, average sale prices were lower at $581, compared with $608 a year ago. | However, average sale prices were lower at $581, compared with $608 a year ago. |
| Its revenue was also better than expected, with the company earning $35.3bn, although that was barely above the $35bn of a year ago. | Its revenue was also better than expected, with the company earning $35.3bn, although that was barely above the $35bn of a year ago. |
| Analysts said the data, especially on iPhone sales, may help allay some fears of a slowdown in Apple's growth rate. | Analysts said the data, especially on iPhone sales, may help allay some fears of a slowdown in Apple's growth rate. |
| "The iPhone number should provide some comfort to investors who were worried about smartphone demand," said Shannon Cross of Cross Research. | "The iPhone number should provide some comfort to investors who were worried about smartphone demand," said Shannon Cross of Cross Research. |
| "That's one of the reasons the stock is up. Expectations were not strong for this quarter." | "That's one of the reasons the stock is up. Expectations were not strong for this quarter." |
| Outstripped | Outstripped |
| One of the brakes on the robust pace of growth that Apple has enjoyed in recent years has been the growing popularity of rivals such as Samsung - which has now become the world's biggest mobile phone maker - as well as the launch of low-cost smartphone by Chinese manufacturers. | One of the brakes on the robust pace of growth that Apple has enjoyed in recent years has been the growing popularity of rivals such as Samsung - which has now become the world's biggest mobile phone maker - as well as the launch of low-cost smartphone by Chinese manufacturers. |
| According to its latest numbers, Apple's sales in China were also down by 4% in the April to June period. | According to its latest numbers, Apple's sales in China were also down by 4% in the April to June period. |
| Research firm IDC has estimated that 66% of the 385 million smartphones sold in China next year will cost less than $200 - significantly less than the cost of Apple's iPhone. | Research firm IDC has estimated that 66% of the 385 million smartphones sold in China next year will cost less than $200 - significantly less than the cost of Apple's iPhone. |
| That has led some investors to fear that Apple may have to cut the price of its products in an attempt to attract customers. | That has led some investors to fear that Apple may have to cut the price of its products in an attempt to attract customers. |
| At the same time, sales of its the iPad tablet computer, fell by 14% to 14.6 million units, compared with 17 million a year ago. | At the same time, sales of its the iPad tablet computer, fell by 14% to 14.6 million units, compared with 17 million a year ago. |
| New products | New products |
| Apple has spent most of the past 10 years as the darling of consumers and investors. | Apple has spent most of the past 10 years as the darling of consumers and investors. |
| But a lack of new products - its last innovation was the iPad in 2010 - has seen faith in it wane recently, and strong competition from South Korea's Samsung in particular, has also eaten into its market share. | But a lack of new products - its last innovation was the iPad in 2010 - has seen faith in it wane recently, and strong competition from South Korea's Samsung in particular, has also eaten into its market share. |
| That has seen investors dump the stock. Its shares have dipped nearly 40% since hitting the peak in September last year. | That has seen investors dump the stock. Its shares have dipped nearly 40% since hitting the peak in September last year. |
| This is the second quarter in a row that the technology giant's earnings have been below those of the previous year. | This is the second quarter in a row that the technology giant's earnings have been below those of the previous year. |
| Analysts said that while the latest numbers were better than they had estimated, the company needed to come up with new products in order to keep growing at a robust pace. | Analysts said that while the latest numbers were better than they had estimated, the company needed to come up with new products in order to keep growing at a robust pace. |
| "This was a 'blah' quarter and the story hasn't changed," said Adam Sarhan, chief executive of Sarhan Capital. | "This was a 'blah' quarter and the story hasn't changed," said Adam Sarhan, chief executive of Sarhan Capital. |
| "Until it delivers a new, innovative product that really adds to both top and bottom-line, I would expect the stock to continue treading water." | "Until it delivers a new, innovative product that really adds to both top and bottom-line, I would expect the stock to continue treading water." |
| For his part, Apple's boss. Tim Cook, said that the company was going to introduce new products soon. | For his part, Apple's boss. Tim Cook, said that the company was going to introduce new products soon. |
| "We are laser-focused and working hard on some amazing new products that we will introduce in the fall [autumn] and across 2014," he said. | "We are laser-focused and working hard on some amazing new products that we will introduce in the fall [autumn] and across 2014," he said. |