Apple blames rare miss on new iPhone anticipation, economy
By Poornima Gupta
SAN FRANCISCO (Reuters) - Apple Inc results fell short of Wall Street's lofty expectations as a sagging European economy and a pause in iPhone sales ahead of a new version saw revenues slip from the previous quarter.
Shares fell more than 5 percent to $570.81 in late trade after the world's most valuable technology company - which beats expectations with near regularity - reported its second quarterly miss in less than a year.
Apple's suppliers also felt the pain. Shares of LG Display, Toshiba and Hon Hai sank between 5 and 7 percent.
The rare miss highlights how the Apple brand is becoming less resistant to the economic and product cycles that have plagued rivals.
"Clearly it was a disappointment," said Channing Smith, Co-Manager of Capital Advisors Growth Fund. "We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S."
Apple did post a 23 percent jump in revenue from the same quarter the previous year to $35 billion, but that was about $2 billion below Wall Street's average forecast.
Net income jumped 21 percent from a year earlier to $8.8 billion, or $9.32 a share, about 10 percent below expectations.
From the previous quarter, sales fell 22 percent in Asia-Pacific, outstripping a 3 percent to 6 percent drop in the Americas and Europe. Continued...