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Apple sales prove underwhelming

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Apple profits up 21%

Apple’s profits have risen by a fifth in the last year – but that still wasn’t enough to satisfy investors who had been hoping for more.

In the three months to 30 June, Apple announced that net profits were up by $8.8bn (£5.7bn), which represents a 21 per cent year-on-year rise. Meanwhile, sales over the same period were up 22 per cent to £22.6bn. However, in a Thomson Reuters poll, analysts had predicted that quarterly sales would climb further to £24bn.

iPads up, iPods down

The distribution of Apple’s sales across its product range also makes for interesting reading. Sales of the iPad enjoyed a remarkable 84 per cent rise, while the number of iPhones shifted increased by 28 per cent. At the other end of the spectrum, Mac computer purchases remained largely static with a two per cent rise while demand for the iPod dropped ten per cent.

In fact, the iPhone sales figures are particularly worth noting since a much stronger performance had been predicted. David Wolfe, of investment consultancy Wedgewood Partners, explained: “What is key is the mixture between iPhone and iPad, the iPhone has higher margins. iPhone sales were lower than expected – meaningfully lower – and that translates into a big hit on the bottom line.”

Nevertheless, Apple will be confident of regaining its momentum over the coming months with a string of product launches. A revamp of the MacBook line of computers was announced recently while a new version of its operating system, OS X Mountain Lion, was unveiled alongside these results. And the iPhone 5, the latest incarnation of its iconic smartphone, has been widely tipped for a September release date.

Tom Glass, creative director at theEword, said: “To some extent, Apple has become a victim of its own success with investors demanding phenomenal levels of growth year-on-year. The only way Apple can answer its critics is by doing what it does best – designing incredible products that people are willing to pay a premium for, starting with the iPhone 5.

Written by Richard Frost

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theEword - 13 hours ago

We’ve delivered over 20 free knowledge share events in 2014, we will round off our events calendar with our digital trends event at #Google

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theEword - 1 day ago

Read more about what Google and theEword are getting up to in Manchester next week! http://t.co/HjF13a09zo

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theEword - 1 day ago

We want you all to benefit from our event with Google! Tweet us your questions and get answers straight from Google themselves #AsktheEword

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theEword - 2 days ago

We are passionate about knowledge share and can’t wait to share snippets straight from Google with you on Monday http://t.co/HjF13a09zo

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theEword - 2 days ago

We're partnering with Google for an event looking at digital trends for 2015 next week. More info here: http://t.co/etwwXV1fwq

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