The stock price of Apple ( AAPL ) took a beating after it reported its first quarter earnings on Wednesday. The profits reported were more than what had been forecasted but investors were worried at the volume of iPhone sales which was lower than expectations. After the earnings call, Apple ( AAPL ) fell by more than 5 per cent during the after-hours trading. When the trading closed Apple’s stock was at $514.17 up 1.86 per cent in New York Trading.
Tim Cook, the CEO of Apple said during the earnings call that “No technology company has ever reported these kinds of results.” It was reported by Apple that it sold more than 47.8 million iPhones during the first quarter against 37 million sold during the same quarter in the previous year. iPhones are the major driver of Apple’s earnings and many of the investors had hoped that their sale numbers would be around 50 million. Investors were eagerly waiting for the earnings after various speculations about iPhone sales and parts.
It was being reported in a section of the press earlier this week that the next version of iPhone is likely to be released in June.
“Certainly a new product line is in the works.It remains to be seen what Apple will ultimately come out with and when. Those are certainly factors to keep an eye on. It will be interesting to see if Apple is really pushing the envelope in terms of innovation and shortening the product cycle.” Brian Colello , a senior equity analyst at Morningstar has told LA times. A report that came last week claimed that Apple had decreased orders for iPhone parts. This rumor might have also played its part in driving the share price of Apple to around $500.
Apple is facing stiff competition from Samsung. Apple’s release of iPhone 4S last summer coincided with Galaxy S 3 release by Samsung. Galaxy S 3 managed to attract strong sales.