A quarterly report of $8.8 billion net profit is how a bad quarter looks for Apple. The most desirable company in the world posted an increase of 21% from a year earlier but still analysts say the figure is still lower than expected.
The total worldwide sales of its gadgets and computers is $35 billion, a good positive trend from last year’s $28.6 billion record. The net income shows a $9.32 per share rate although according to analysts asked by Thomson Reuters, Apple expected each share to rise at $10.36.
Shareholders will receive a rare dividend of $2.65 per share this coming 26 August.
Apple did not expect to be hit by poor selling of its iPod music player, which dropped by 10%, and flatlined sales of its Mac computers, which only rose by 2%.
Which one: iPad or iPhone?
Apple said that the overall sales of iPad around the world at the end of June is a whopping 17 million units. The computer maker and consumer gadget company attributed the huge sale to the launch of the third generation iPad, which was released in the United States in March, followed by the debut in most other countries last quarter.
The second generation tablet from Apple also boosted the overall sale after the company decided to sell iPad 2 at $100 discount. Schools are the most energetic buyers of iPads, overtaking their need to acquire more Macs.
Analysts however, are saying that the advent of lower price point contributed to the fall of revenue as an average revenue for an iPad unit fell by over $100 dollars compared to the price a year ago. Also, Apple encountered an unexpected problem of putting the new iPads to shelves in China, which significantly affected the sale there.
While the iPad tablet seems to be faring well during the quarter, the biggest disappoint is the former number revenue driver: the iPhone. The company only sold around 26 million units, which still falls well below the previous record. The number constitues a 28% rise it still shows slower growth, contrary to what many analysts had forecasted. On the other hand, the iPad rose 84% from the previous year’s figures.
Apple had been telling analysts that there was a big chance that iPhone sales would go down for the past two quarters but expectations from analysts put worldwide sales to 29 million. The slumping European economy did not help although the Chinese market’s demand remains strong despite decreasing electronics sales.
Dealing with archrival Samsung
Also, Apple announced last Tuesday that it would seek compensation and damages of about $2.5 billions from Samsung. In a court hearing, Apple claims that its number one rival copied the design for its flagship products, iPad and iPhone. Apple said Samsung has violated infringement patents is has for the said products.
As expected, Samsung denies Apple’s intellectual property allegations and countered that it is Apple that has infringed on Samsung’s patented wireless connections technology.
The court suggested early this year that the two tech giants to settle their differences outside of court but talks broke down two days afterward.