Apple Reports Solid Results for FQ4, iPhone Sales Disappoint

October 19 00:00 2011

New York, October 19 (RainbowNewsLine.com) – Despite a 54 percent rise in profits and a 39 percent revenue growth for Q3, investors feel disappointed because it missed Wall Street forecasts for its iPhone business. The company blamed the shortfall in iPhone sales on rumors that it would be releasing a new phone in the fall, leading consumers to defer their purchases so that they could get the latest version.

Although Apple did launch its new phone – the iPhone 4s earlier this month and termed it the best initial sales of any iPhone yet, it was too late to benefit the fourth quarter that ended September 24.

The fourth quarter results released Tuesday sent the company’s shares tumbling down nearly 7 percent in after-hours trading. Investors were disappointed by a 16 percent decline in iPhone sales from the third quarter although the company reported big increases in the sale of the iPad and Mac computers. The company also claimed that the number of iPhones it sold in the quarter jumped 21 percent from a year ago.

After the launch of the iPhone 4S, Apple had said that more than four million were sold during the first weekend it was available, which is more than double the sales of its predecessor in the first days after its introduction. Investors and analysts largely accepted this explanation.

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