Apple Reports Record Quarterly Earnings, Stock Drops
UPDATED: The tech giant, led by CEO Tim Cook, posted record sales of iPhones and iPads, but revenue came in lower than expected.
Technology giant Apple on Wednesday reported record quarterly earnings and revenue driven by record sales of its most popular products, but its stock dropped amid concerns about weaker-than-expected revenue growth.
The company, led by CEO Tim Cook, posted a fiscal first-quarter profit of $13.08 billion, slightly higher than the $13.06 billion recorded in the year-ago period. Revenue rose to $54.5 billion from $46.3 billion in the year-ago quarter. International sales contributed 61 percent of total revenue.
The profit figure exceeded Wall Street estimates, but meant only a slight gain as the company continued to spend to fend off competitors. Revenue came in below analysts' expectations. Apple's stock fell more than 5 percent in after-hours trading.
In its earnings report after the stock market close, Apple said it sold a record 47.8 million iPhones, up from 37.0 million in the year-ago period, and a record 22.9 million iPads in the latest quarter, up from 15.4 million. However, Apple sold 4.1 million Mac computers, down from 5.2 million a year earlier.
The iPhone sales figure was roughly in line with expectations, but some observers expressed disappointment that they didn't exceed them.
"We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world," said Cook.
The company's stock closed at $514 before the report.