Apple managed to push their sales upwards with a record of $57.6 billion due to the strong demand for iPads and iPhones. However, the company still experienced a value slump of $40 billion. This lose has raised concern among investors who feel the company’s growth is likely to lose steam. Apple managed to sell a total of 51 million iPhones in the last three months towards December. This figure is 3 million more when compared to the sales made during the same period in the previous year. This sale helped push the revenues upwards by 5.6% from $54.5 billion. Such growth marked a dramatic slowdown experienced in the past few years where investors would witness extraordinary growth by double-digits.
Apple’s profits remained slightly above $13 billion. Investors were also surprised by the projections of the company concerning the sales to be made in the current quarter. The initial forecast sales by analysts were estimated to be about $46 billion due to the uplift in China. However, reports from Apple indicate an estimated projection sale of between $42 billion and $44 billion.
Tim Cook, the chief executive of the technology business at Apple expressed satisfaction on the performance of the company. He expressed how happy and satisfied the company was regarding their record sales of iPad and iPhone, the strong performance of Mac products and the ever growing sales of iTunes and software. He emphasized on Apple’s spirit to satisfy the needs of their customers. He also emphasized on their continued investment to enable customers have the best experiences with their products and services.
Cook blames the slowdown in America to be impacting serious effects on the company. America is Apple’s largest market. Currently, several mobile carriers have altered the rules surrounding mobile phone upgrades. This has made it harder for their customers to get the latest iPhone into their hands immediately it is released. According to Cook, the projections made by analysts were majorly distorted by currency exchange rates. The projections did not credit to the present health condition of Apple’s business. However, he was still optimistic on the prospects of the company within the Chinese market. This is occasioned by the decision by China Mobile to start selling their Apple devices.
China Mobile is a watershed for Apple since it has a huge number of subscribers all over the world. Each of the two companies has a strong belief that the partnership will bear huge fruits. Apple has also reassured investors on their new products waiting in the pipeline. This has hugely reignited the rumors that the company is coming up with wearable technology such as an Apple television or Apple watch. However, not everyone is convinced with Apples assurance of business deals. The shares slumped at 8% to below $508 billion in a few hours after trading in New York. The slump wiped off $40 billion from the company which is more than Yahoo’s entire value. The slump in the shares is likely to agitate who feel the company should refund $159 billion cash hoard to the shareholders.
According to Alex Gauna, an analyst at JMP Securities, the quarter was reasonably sold. However, the number of iPhones that was shipped depicted a slight disappointment to the people’s expectations. Apple is a great company and it needs to find answers to such questions in order to grow effectively.