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Apple Announces Quarterly Earnings, Misses Expectations

By - Source: Apple | B 26 comments

Amid all of the Android 4.0 hubbub, Apple has announced its quarterly earnings hot on the heels of its most successful iPhone launch ever.

Apple yesterday afternoon announced financial results for its fourth fiscal quarter for 2011, which ended September 24. The company posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. This compares to revenue and net quarterly profit of $20.34 billion and $4.31 billion (or $4.64 per diluted share), respectively, for the same period last year.

Despite the fact that revenue jumped 39 percent to $28.27 billion, Reuters reports that analysts had been expecting earnings of $7.38 per share on revenue of $29.7 billion. The blame for lower-than-expected performance is placed on slow iPhone sales due to the October launch of the iPhone 4S.

For the quarter ended September 24, Apple sold 17.07 million iPhones, a 21 percent growth over the same period in 2010. The company shifted 11.12 million iPads, a 166 percent increase over Q4 2010, and 4.89 million Macs, which represents a 26 percent unit increase over the year-ago quarter. The only product line that saw a decline in sales was the iPod. Apple says the 6.62 million iPods it shifted this past quarter is a 27 percent decline from Q4 2010.

"We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion," said CEO Tim Cook. "Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline."

Looking ahead to Apple's first fiscal quarter of 2012, the company is expecting revenue of about $37 billion and diluted earnings per share of about $9.30. Analysts are a little more conservative in their estimates, expecting earnings of $9 per share on revenue of $36.7 billion.

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  • 21 Hide
    krowbar , October 19, 2011 6:20 PM
    tom's hardware can barely keep up on real hardware news, but boy can they report on everything apple.
  • 14 Hide
    asiansaurus , October 19, 2011 6:49 PM
    getrealI'm glad I was able to get an iPhone 4s already, so I can laugh at poor people who can't afford them (Android users).


    Most current Android phones cost the same as an iPhone. ($199 with contract, $299 for higher end models).
  • 14 Hide
    ap3x , October 19, 2011 7:04 PM
    getrealI'm glad I was able to get an iPhone 4s already, so I can laugh at poor people who can't afford them (Android users).


    That was a lame statement dude.
Other Comments
  • 21 Hide
    krowbar , October 19, 2011 6:20 PM
    tom's hardware can barely keep up on real hardware news, but boy can they report on everything apple.
  • 12 Hide
    Prey , October 19, 2011 6:24 PM
    I also heard this morning that Apple exceeded their own expectations for earnings, while wall street projected Apple to do better. Apple missed the Wall Street mark, not their own.
  • 14 Hide
    asiansaurus , October 19, 2011 6:49 PM
    getrealI'm glad I was able to get an iPhone 4s already, so I can laugh at poor people who can't afford them (Android users).


    Most current Android phones cost the same as an iPhone. ($199 with contract, $299 for higher end models).
  • 10 Hide
    ta152h , October 19, 2011 6:52 PM
    More companies should have such disappointing earnings.
  • 14 Hide
    ap3x , October 19, 2011 7:04 PM
    getrealI'm glad I was able to get an iPhone 4s already, so I can laugh at poor people who can't afford them (Android users).


    That was a lame statement dude.
  • 11 Hide
    rpgplayer , October 19, 2011 7:05 PM
    getrealI'm glad I was able to get an iPhone 4s already, so I can laugh at poor people who can't afford them (Android users).


    I'd say that you are using the iphone as a phallic symbol. lucky for you the iphone is probably larger than your own phallus.
  • 4 Hide
    bak0n , October 19, 2011 7:12 PM
    The best part about Apple is once you buy their product, you have to buy it again or lose out on all the apps you purchased that only work with their products.
  • 8 Hide
    ap3x , October 19, 2011 7:13 PM
    rpgplayerI'd say that you are using the iphone as a phallic symbol. lucky for you the iphone is probably larger than your own phallus.


    Great way to joke about a private part without actually using the word that everyone understands. lol. You might be right though. lol
  • 0 Hide
    ap3x , October 19, 2011 7:16 PM
    bak0nThe best part about Apple is once you buy their product, you have to buy it again or lose out on all the apps you purchased that only work with their products.


    That is a big thing and I think that is what all companies like about having an app store. Retention of user base is huge and Apple has very strong retention rates.

    You don't have to buy it again, just depends on your App investment for that platform. If you are a person that buy's fart apps, chances are you can make the switch pretty easily. If you buy useful apps then it is a bit harder to switch to a solution that does not have those same apps.
  • 2 Hide
    Footloose , October 19, 2011 7:17 PM
    People apparently with more intelligence and the free will to think for themselves versus thinking what Apple wants them to think.
  • -3 Hide
    Footloose , October 19, 2011 7:17 PM
    People apparently with more intelligence and the free will to think for themselves versus thinking what Apple wants them to think.
  • 5 Hide
    bigdragon , October 19, 2011 7:20 PM
    Apple's profit increased only 53%? Apple's revenues increased only 39%? That's some serious doom and gloom news coming from Wall Street. I keep reading these articles about Apple's apparently lackluster performance all over the web. Now I think I understand what the protesters are upset about given that Wall Street is depressed with Apple's 53% increase in profits and 39% increase in revenues.
  • 6 Hide
    gmarsack , October 19, 2011 7:54 PM
    This "terrible" news will somehow affect gas prices... don't ask me how, but it will...
  • 3 Hide
    anti-painkilla , October 19, 2011 8:15 PM
    That really isnt a bad performance, they were just off expectations. I dont see the disappointment. Unless they really expected apple to exceed their expectations.

    They released the 4S which is a joke, but still selling like hot cakes. If only other companies has such an amazing marketing department.
  • 7 Hide
    hotsacoman , October 19, 2011 8:34 PM
    getrealThey are?! WOW! Who would actually be dumb enough to pay that much for an Android toy?


    If it does more than make a phone call, its a toy.
  • 7 Hide
    festerovic , October 19, 2011 8:56 PM
    I heard Tom's will stop reporting on apple stuff when there is only 5 replies per article. Since they know everyone here hates apple, they lay the troll bait out and everyone has a sandwich.
  • 3 Hide
    dkant1n , October 19, 2011 9:06 PM
    I think it's an accomplishment that they could keep sales while Android phones are taking over market
  • -3 Hide
    tramit , October 19, 2011 11:51 PM
    FootloosePeople apparently with more intelligence and the free will to think for themselves versus thinking what Apple wants them to think.


    Judging intelligence from what phone someone uses is quite ignorant. I have used all most modern mobile OS and I cannot say absolutely that one is better then the other. My preference changes with time and a switch phones all the time. Why limit yourself to just one kind of platform/approach?
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