Apple revenue, iPhone shipments miss Street forecasts

On the heels of Intel, Apple posted record breaking quarterly results of its own this afternoon. However, as Reuters reports, Apple shares took a tumble in the aftermath because the company’s revenue and iPhone shipments missed Wall Street analyst forecasts.

Here’s how much money Apple made last quarter:

   Q4FY10 Q3FY11 Q4FY11
Revenue $20.34 billion $28.57 billion $28.27 billion
Net profit $4.31 billion $7.31 billion $6.62 billion
Gross margin 36.9% 41.7% 40.3%

And here’s how many devices it shipped:

   Q3FY10 Q2FY11 Q3FY11
iPhones 8.4 million 20.34 million 17.07 million
iPads 3.27 million 9.25 million 11.12 million
Macs 3.47 million 3.95 million 4.89 million
iPods 9.41 million 7.54 million 6.62 million

Reuters says analysts were expecting "roughly 20 million" iPhone shipments and $29.69 billion in revenue for the quarter. That’s despite Apple’s own revenue forecast of $25 billion, which it made in July. One would guess the iPhone 5 hype of recent weeks curbed demand ahead of the iPhone 4S’s launch, which took place right before the end of Apple’s fourth fiscal quarter.

Nevertheless, Apple CFO Peter Oppenheimer boasts, "We are extremely pleased with our record September quarter revenue and earnings." Oppenheimer adds that he expects revenue for the next quarter to climb to $37 billion.

Comments closed
    • dashbarron
    • 8 years ago

    I’m still puzzled over why they didn’t slap a new case on the 4S and call it the 5. I’ve heard from a dozen sources just as Cyril says, that people were waiting for the 5. Techies mostly know the marketing hype, everyone else doesn’t and buys a new version because it is new.

    I don’t know if not putting out the 5 was intentional or not, but maybe just maybe Jobs’ failing health led to a mishap in delivering this product.

      • End User
      • 8 years ago

      It appears that Apple has settled on something similar to the tick-tock model for iPhone. 3G->3GS and now 4->4S. I would not be surprised to see 5->5S and so on.

        • dashbarron
        • 8 years ago

        Hmmm, interesting. Thanks for the info.

    • derFunkenstein
    • 8 years ago

    LOL Apple made more money than they ever have before in Q4 of any fiscal year, and you morons are predicting that this is the beginning of the end? You know this was all wrapped up before Jobs died, right?

    • HisDivineOrder
    • 8 years ago

    Haha, that’s hilarious. Apple’s own secrecy and cloak dagger crap has actually hurt them. Perhaps they’ll dial down the magic rhetoric and refrain from building months of hype only to do a minor refresh in the face of the inevitable big change coming soon (TM pending).

    Then again, they’ll probably just keep doing whatever they feel like, which has worked so far.

      • Farting Bob
      • 8 years ago

      How do you work out that its their secrecy that has cost them money? The quarter ended on 24th September and the new iphone was announced on 4th October, releasing 10 days later. So they could have announced a phone that released a smell of shit every time you used it and it wouldnt have effected these financial results. They will still sell many millions of iphones this quarter, especially since they moved the release schedule to nearer christmas.

    • l33t-g4m3r
    • 8 years ago

    And thus marks the beginning of the end. Sayonara, Apple. I won’t miss you, or your lock-in ripoff products, created with slave labor.

      • destroy.all.monsters
      • 8 years ago

      It will be nice to see them lose their mindshare that’s for damn sure. Them going down the toilet seems unlikely.

      Somewhat off – topic: just saw that Ubuntu video and story – do you think that interface will appeal to those who like Apple? I thought it looked rather refreshing (and of course the side benefit of not being a walled garden etc.)

      Further off topic – and more of a thinking out loud thing – do you think there’s a solution for those of us whose friends and family keep using Apple and finding something simple enough to replace it without having to do tech support all the time for them? A sort of friends don’t let friends use Apple thing.

        • End User
        • 8 years ago

        [quote<]just saw that Ubuntu video and story - do you think that interface will appeal to those who like Apple?[/quote<] As someone who loves Apple products I must say that I love Unity. 11.10 is running on my primary system.

          • willmore
          • 8 years ago

          That explains why I find it so annoying! Finally, a good explanation.

            • End User
            • 8 years ago

            And your primary OS is?

            • willmore
            • 8 years ago

            Linux like it has been for over a decade. Why?

            • End User
            • 8 years ago

            Which distro?

            • willmore
            • 8 years ago

            Started with SLS and then moved to RedHat/Fedora Core/Fedora. I use Debian on little boxes for the packaging flexability. I keep trying Ubuntu, but I feel like I have one hand tied behind my back when I do.

            I’m reading a few articles on ways to make Gnome 3.2 much more like 2.x which should help. Xfce is nice, but it really shows the lack of love it’s given in the desktop manager world. So far no crashes, but plenty or rendering bugs. Then again, this is running on a Sandy Bridge box and Fedora 16 beta, so it might be something other than Xfce’s fault.

            • End User
            • 8 years ago

            I can see why 11.10 is not your cup of tea.

            • willmore
            • 8 years ago

            I like the analogy that Linux (and UNIX in general) is like a box covered on all sides with switches, knobs and lights. They’re all cryptically labeled. Some of them don’t seem to do anything and other ones make the box stop working. Windows is a box with covered with lights, switches and knobs, but the knobs and switches are on the inside where you can’t get to them. MacOS(pre OSX) was a featureless white box with one light right in the middle. There is *one* button and it doesn’t seem to do anything. OSX is just like Linux, but someone took a grinder and gound down all of the knobs and switches until they were flush with the case. They, then, covered it in white laquer–leaving only one light uncovered.

            I prefer my knobs where I can get at them.

          • destroy.all.monsters
          • 8 years ago

          Thanks EU, I’m going to try to find a willing victim for my experiments.

            • End User
            • 8 years ago

            Just buy them an iPad 2.

            • destroy.all.monsters
            • 8 years ago

            Gah, no.

      • End User
      • 8 years ago

      Apple surpassed their own estimate by more than $3 billion.

      Apple’s next quarter will be a monster.

        • NeelyCam
        • 8 years ago

        [quote<]Apple's next quarter will be a monster.[/quote<] Why would that be...? iPhone 4S? You do know that Android is eating into Apple's market share, right?

          • sweatshopking
          • 8 years ago

          you’re just saying that cause it’s true. the thing is though, despite android eating market share, they’re still moving more phones, cause the market for fancy phones is growing. It’s dumb, but it’s true.

          • ltcommander.data
          • 8 years ago

          I believe Apple’s market share has actually been holding steady even as the iPhone 4 was getting more than a year old. Android’s market share growth is still at the expense of RIM, Symbian, and Windows Mobile.

          Most important for investors though is that Apple’s share of the profits in the smartphone market has been growing all through Android’s rise, hitting 66% as of the latest Q2 figures. The rest of the market is busy undercutting each other for market share, while Apple’s profit share could translate into a large R&D and supply chain investment advantage.

            • tay
            • 8 years ago

            A sensible post worthy of your nick. That said, there is a lot of pressure to execute because of improved competition from an improving Android.

          • End User
          • 8 years ago

          The smartphone market is growing. Apple can lose market share at this point and still sell more iPhones this quarter.

          Both the iPad and the Mac will have strong sales this quarter in addition to the iPhone.

          Apple is forecasting a $37 billion quarter. I’m betting it tops $40 billion.

          • CuttinHobo
          • 8 years ago

          I don’t follow the reasoning, either. Why will it be a monster? What are they introducing that’s so big it will add give-or-take $10 billion dollars to the quarter?

          The press release didn’t shed any light on it, either. Perhaps they’re working on a “Saint Jobs” merchandise line to strike while the iron is hot.

            • Farting Bob
            • 8 years ago

            Apple are planning on release “christmas” this quarter, and its expected to result in many more sales.

          • derFunkenstein
          • 8 years ago

          The market is growing faster than Android so they’ll still be moving plenty of units.

      • TakinYourPoints
      • 8 years ago

      Nice to know none of the other gadgets and components you own weren’t made with Chinese slave labor.

      Oh…

      • sparkman
      • 8 years ago

      LOL. Apple sold four million iPhone 4S’s on it’s launch weekend.

      This whole article is only because Wall Street forgot to account for “iPhone 5” hype dampening sales just before the launch.

      I hope Android gets their act together but this is all good news for Apple and anyone saying otherwise is kidding themselves.

        • MadManOriginal
        • 8 years ago

        I’d say that TakinYourPoints in post #17 is more on point regarding the stock price move (after hours). A blowout quarter was already priced in, this was not a blowout quarter sequentially.

      • beck2448
      • 8 years ago

      Apple still made fifty per cent more revenue and twice the profit of INTEL’s best ever quarter. They are hardly in trouble, as they have 75 billion to fund R and D, and no debt.They sold 4 million Iphone 4s in first week end breaking every record. Next year they have major upgrades such as iPhone 5, and all new Macbook Pros coming. 2012 will be huge for Apple. Sorry haters.

    • ltcommander.data
    • 8 years ago

    When you report a record quarter and analysts are still disappointed, I wonder who’s fault is that?

      • destroy.all.monsters
      • 8 years ago

      Makes me wonder just how powerful the RDF really was.

      Wall St., analysts, stupid and short-sighted in new shock horror story!

      One day – though I don’t expect to see it in my lifetime – someone will finally see that Wall Street is nothing but legalized gambling mixed with insider trading and is a giant scam.

        • sweatshopking
        • 8 years ago

        someone has seen it. there are a ton of people in the streets. whether people that make rules put aside self interest for the greater good is another question. R&P!!!!!!!!!!!!!!

      • TakinYourPoints
      • 8 years ago

      AAPL moved from $370 to $420 in two weeks. Good news was already priced into the stock. Even with a drop from here it is up.

      Ever wonder why stocks drop on good news and stocks rise on bad news? Well, there’s the answer. 🙂

      Oftentimes the market will price news in well ahead of time. It also functions to take money away from amateur day traders, such as the ones who anticipated AAPL to rise the day on earnings even though the market had already priced good earnings in well ahead of time.

      • MadManOriginal
      • 8 years ago

      How do you figure it was a record quarter? In unit shipments for some segments yes, but not financially – it was a weaker quarter overall sequentially and this quarter contained back-to-school sales – and financially is what matters to Wall Street.

        • ltcommander.data
        • 8 years ago

        It thought the most correct point of comparison is the year-ago quarter rather than sequentially. In that case, Apple is correct since this is a record fiscal year Q4 for them, dramatically so with a 39% increase in revenue and 54% increase in profits.

        This may be the back to school quarter, but the lack of the usual refresh of both the iPhone and the iPod lineup seems to have negatively impacted quarterly growth sequentially. Given the strong initial iPhone 4S sales, it looks like most people have simply been delaying their purchases rather than looking elsewhere, so at the end of the day, or more appropriate at the end of the fiscal year, it’s not likely a big concern.

        EDIT: This might also be why the analysts estimates for the quarter were overly rosy. The iPhone refresh didn’t happen at WWDC in June, but the expectation was that it would happen at the usual early September iPod Media event. So when analysts released their guidance for the quarter they were likely expecting a few weeks of new iPhone and iPod sales. The launch ended being pushed into the next quarter and this probably accounts for the difference between analyst expected revenue of $29.69 billion and Apple’s actual performance of $28.27 billion.

          • MadManOriginal
          • 8 years ago

          You can compare it to whatever you want, but to be a ‘record quarter’ at least revenue and net profit should be higher than any other quarter. Otherwise it should be called a ‘record third quarter’ or whatever.

          Also, analysts continually change their expectations and estimates, they don’t just state them at the beginning of a quarter and that’s it.

            • ltcommander.data
            • 8 years ago

            [url<]http://www.apple.com/pr/library/2011/10/18Apple-Reports-Fourth-Quarter-Results.html[/url<] "“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter,” said Peter Oppenheimer, Apple’s CFO." I think it's the media that is misquoting Apple or just assuming people will understand the scope of the statement. Apple's claims are correctly limited to "record September quarter".

            • tay
            • 8 years ago

            Apple assumes its not talking to ignorant tech-heads. You can’t compare sequentially because of back to school and holiday.

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