Apple’s results fell short of Wall Street’s targets as the European economy sagged and consumers held off on buying its flagship iPhone ahead of a new version expected in the fall, hitting its stock price.
Apple posted a 23% jump in revenue from the same quarter in the previous year to $35 billion, about $2 billion below Wall Street’s forecast.
Net profit jumped 21% from a year earlier to $8.8 billion, about 10% below expectations.
From March to June, Apple shipped 26 million iPhones, wellbelow the 28-29 million that Wall Street analysts had predicted, even taking into account a pause in buying ahead of the iPhone 5. It was a far cry from the 35.1 million that moved in the March quarter. However, sales of the iPad, the tablet that accounts for well over half the world's market, came in at 17 million in the fiscal third quarter, above expectations.
From the previous quarter, sales fell 22% in Asia-Pacific, outstripping a 3-6% drop in the US and Europe.
Shares of the world’s most valuable technology company dropped more than 5% after Apple had a second quarterly miss in under a year.
Apple, under Tim Cook since August, divided the blame for the miss between muted purchases in Western Europe and the pullback in demand as consumers wait for the new iPhone 5 model that many expect will be launched in September or October.