According to reports, Apple Inc. reported a rise in its quarterly profit to $8.8 billion on hot iPad sales but missed lofty Wall Street expectations due, in part, to iPhone lovers waiting for a rumored new model.
The profit in the fiscal quarter to June was up 20.5 percent from a year earlier, but short of analyst forecasts. Revenues rose 22.5 percent to $35 billion, also below expectations of more than $37 billion.
In a conference call, Apple chief financial officer Peter Oppenheimer said that revenue in the quarter was hampered by weak sales in Europe, a strengthened US dollar, and rumor of a new iPhone poised for release.
“Our weekly iPhone sales continue to be impacted by rumors and speculation about new products,” Oppenheimer said.
“We try very hard to keep our product roadmap secret and confidential,” Apple chief Tim Cook said during the call.
“I’m not going to put any energy into stopping people from speculating,” he added. “I’m glad that people want the next thing; I’m super happy about it.”
With Apple’s rare miss of analyst forecasts, shares slid more than five percent in after-hours trade to $567.80.
Apple said it was pleased with the results, including sales of 17 million iPads, a year-over-year rise of 84 percent.
Cook said that none of the iPad competitors fielded in the past year has gained “any level of traction at all”.
“I still think that most customers feel they are not looking for a tablet, they are looking for an iPad,” Cook said.
The company also sold 26 million iPhones in the quarter, up 28 percent, and four million Macs, a two percent unit increase despite overall computer industry sales inching down a percent in the quarter.