For the first time in almost seven years, Apple missed Wall Street’s expectations sending the stock down by 6%. In its most recent revenue earnings call, new CEO Tim Cook revealed that the company had earned $7.05 per share. The figure represented substantial growth, as the same quarter last year saw profits per share at $4.64, and just about thirty cents less than investors and analysts had planned.
The earnings call is the first such since the recent passing of former CEO and Apple co-founder Steve Jobs.
What caused the drop in profits? In all likelihood, it can be blamed on the iPhone. Rather, the lack thereof. Apple has traditionally released details about its next flagship phones in June, at its Worldwide Developers’ Conference (WWDC). This year, WWDC came and passed without even a hint of what the new phone might look like.
Instead, Apple released the phone just a few days ago. Since then, it’s experienced record-breaking sales at over 4 million iPhones sold – but those numbers came after the close of the company’s fiscal fourth quarter. The reduced iPhone sales are due to customers waiting uncertainly for the next-generation iPhone, which was released in the form of the iPhone 4S.
Still, the iPhone represents well under half of the revenue for Apple, which adds the rest via its iPod and Mac hardware lines, the latter of which are also experience record numbers. The hardware company has managed to outsell the industry market growth for the last several years running, and its top-selling Apple iMac all-in-one desktop computer is America’s best-selling desktop.
Cook opened the call with a brief tribute to its fallen founder, telling listeners, “Steve was a great leader and mentor and inspired everyone at Apple to do extraordinary things. His spirit will forever be the foundation of Apple, and we are dedicated to continuing the amazing work that he loved so much.”