Under pressure from Samsung, Apple has seen their quarterly revenues fall resulting in their stock taking a 5% dive overnight.Sales of iPhones fell to 26 million units. Analysts were expecting 28 million which would have been down from the 35 million sold by the Company in the first quarter ending in March.
Third-quarter revenue rose to $US35 billion, much lower than the average analyst estimate of $US37.22 billion.
Despite the fall in revenue, Apple was still able to deliver gross margin for the quarter of 42.8 per cent, lower than the expected 43.68 per cent.
Apple sold 4 million Mac computers and 6.8 million iPods, compared with 4.3 million Macs and 6.6 million iPods projected by analysts in a Bloomberg survey.
The fall in revenue is the second time since 2003 that Apple has missed profit and sales estimates. This time it was prompted by customers delaying iPhone purchases ahead of a new version.
Profits climbed 21 per cent to $US8.82 billion, or $US9.32 a share, in the period that ended June 30, Apple said today in a statement.
Analysts had predicted profit of $US10.37 a share, according to Bloomberg data.
Bloomberg said that with tablet sales predicted by research firm Yankee Group to overtake those of personal computers by 2015, Apple is preparing for more challengers for its top-selling iPad. Microsoft later this year will begin selling its Surface tablet, while Google last month introduced its Nexus 7.
Apple’s iPad will account for 62.5 percent of tablet sales this year, according to the IDC. The company is also preparing to introduce a model with a smaller screen, people familiar with the plans said earlier this month.
Apple is also battling Samsung Electronics Co. for leadership in the global smartphone market. While Apple has debuted one new model iPhone every year, Samsung has released a variety of handsets, including the Galaxy S III released in May.
Apple’s next iPhone will have an overhauled look and include a larger screen, people familiar with the plans said in May. The device also is predicted by analysts to have a stronger processor and work with faster long-term evolution wireless networks.
Apple is currently holding a Conference Call, more to follow.
