This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-24719728
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Apple profits beat expectations on strong iPhone sales | Apple profits beat expectations on strong iPhone sales |
| (35 minutes later) | |
| Apple has reported a fourth quarter profit of $7.5bn (£4.6bn), beating analysts' expectations. | Apple has reported a fourth quarter profit of $7.5bn (£4.6bn), beating analysts' expectations. |
| Although iPhone sales surged 26% to 33.8 million, profits still declined for a third consecutive quarter. | Although iPhone sales surged 26% to 33.8 million, profits still declined for a third consecutive quarter. |
| Nonetheless, Apple chief executive Tim Cook insisted that "business was stronger than ever" on an earnings call. | Nonetheless, Apple chief executive Tim Cook insisted that "business was stronger than ever" on an earnings call. |
| While still extremely profitable, Apple ended its fiscal year with its first annual earnings decline in 11 years. | While still extremely profitable, Apple ended its fiscal year with its first annual earnings decline in 11 years. |
| Apple's stock slid by more than 3% in after hours trading. It remains down by more than 13% for the year. | |
| Analysts were eagerly anticipating these earnings, as they're the first that take into account sales of Apple's new iPhone models: the iPhone 5s and the cheaper iPhone 5c, meant to appeal to the Chinese market. | |
| Revenue in the greater China region - which includes Tawain - rose by 24%, however the company did not break out sales figures for the iPhone 5c. | |
| Mr Cook insisted that the iPhone 5c was not meant to be the company's "cheaper" model. | |
| "I realise that some people were reading rumours that the entry iPhone would be the 5c but that was not our intent," said Mr Cook. | |
| "Our entry iPhone was the iPhone 4s." | |
| Wait and see | |
| Mr Cook also touted the number of new products Apple has released in the past few months, almost completely refreshing its product line. | |
| The releases include the new iPhone models, an iPad mini with retina display, the new iPad air, updates to its Macbook laptops, and a release of an update to its operating system, iOs7. | |
| "We're excited to go into the holidays" with these new models said Mr Cook in a statement to discuss the earnings. | |
| However, analysts were disappointed by forward guidance given by the company, which indicated that future profits might still decline. | |
| Apple said it expected revenue next year to be somewhere between $55 - $58bn, and it said that its gross margin - the difference between the amount the company spends to make a products versus how much consumers pay - would be between 36.5% - 37.5%, less than analysts were expecting. | |
| Peter Oppenheimer, Apple's chief financial officer, explained that this was partly because it cost more to manufacture the company's new iPads and Macbooks and that prices weren't boosted accordingly. | |
| The company said it had more than $146.8bn in cash on hand, adding to its considerable reserves. | |
| It indicated that it would be returning more of that money to shareholders in the coming weeks. |