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Apple cuts $1bn in spending after missing iPhone sales expectations | |
(35 minutes later) | |
Apple is cutting investments in everything from high street stores to manufacturing equipment to save $1 billion (£639 million) this year. | Apple is cutting investments in everything from high street stores to manufacturing equipment to save $1 billion (£639 million) this year. |
The updated forecast comes after the company reported its third-quarter earnings, beating expectations on profit but falling short of expectations on iPhone sales. | The updated forecast comes after the company reported its third-quarter earnings, beating expectations on profit but falling short of expectations on iPhone sales. |
Apple sold 47.5 million of the flagship device, missing analysts' expectations for sales of 49 million, and sending its shares down as much as 7% in after-hours trading. | Apple sold 47.5 million of the flagship device, missing analysts' expectations for sales of 49 million, and sending its shares down as much as 7% in after-hours trading. |
In a filing, the tech giant said it now expects to spend $12 billion, 8% less than initially proposed, on product tooling, data centres, corporate facilities and infrastructure, including information systems. | In a filing, the tech giant said it now expects to spend $12 billion, 8% less than initially proposed, on product tooling, data centres, corporate facilities and infrastructure, including information systems. |
The reduction will not involve any changes to product plans, an Apple spokeswoman told the Wall Street Journal. | The reduction will not involve any changes to product plans, an Apple spokeswoman told the Wall Street Journal. |
Apple is widely expected to be launching a new model of the iPhone in the coming months, with many reports predicting a September unveiling. | Apple is widely expected to be launching a new model of the iPhone in the coming months, with many reports predicting a September unveiling. |
Despite the third quarter disappointment on the iPhone, its latest versions - the larger-screened iPhone 6 and iPhone 6 Plus - are still selling well. | Despite the third quarter disappointment on the iPhone, its latest versions - the larger-screened iPhone 6 and iPhone 6 Plus - are still selling well. |
Sales of the devices increased 35% year-on-year in the three months to June and doubled in the all-important Chinese market. | Sales of the devices increased 35% year-on-year in the three months to June and doubled in the all-important Chinese market. |
Apple is also setting its sights on a strong Christmas period for its newest release, the Apple Watch. | Apple is also setting its sights on a strong Christmas period for its newest release, the Apple Watch. |
Apple reported net profit of $10.7 billion in its third quarter, up from $7.7 billion last year. | Apple reported net profit of $10.7 billion in its third quarter, up from $7.7 billion last year. |
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