Apple has rare miss on pre-iPhone lull, global economy

Answer 1

Apple announced its 3rd quarter profit on Tuesday and fell short of analysts' expectations. The stock closed at $600.92 before earnings were released and slid over 5% in after-hours trading.

Apple had $35 billion in revenue and shipped 26 million iPhones in the last quarter, however, it was far below analyst estimates at $37.22 billion in revenue and iPhone sales of 28 million to 29 million.

iPad sales surpassed expectations at 17 million but it was unable to offset the lower than expected iPhone sales.

The earnings per share outlook for the 4th quarter was estimated at $10.23 per share on revenue of $38.03 billion, however, Apple announced a lower outlook at $7.65 per share on revenue of $34 billion.

Apple's earnings miss is attributed to consumers delaying purchases until the new iPhone version is released, expected in the fall, and greater competition from Google's Android phones.