Apple sells 17m iPhones, but not enough to hit targets as rumours hurt sales

Stocks take a tumble

Apple sells 17m iPhones, but not enough to hit targets as rumours hurt sales. Biz, Apple, Results 0

18 October 2011 22:06 GMT / By Stuart Miles

Apple has confirmed that it has sold 17.07 million iPhones, 11.12 million iPads, 4.89 million Macs, and 6.62 million iPods over the last quarter but failed to meet its expected target causing the company to lose 8 per cent on the share price in trading immediately after the news.

While the numbers represent increases in all areas apart from the company’s iPod division it is the first time Apple failed to meet markets expectations since 2002.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO, failing to mention the missed target.

Looking at the figures, that missed target is mostly down to iPhone sales that didn’t live up to expectations most likely due to the iPhone 4S coming out after the September cut off for these results.

For the quarter in question, iPhone sales came in at 17.07 million, compared with forecasts of 20 million.

“Pervasive iPhone rumours kept customers from purchasing” iPhones in the quarter added CFO Peter Oppenheimer on the company's conference call. 

The iPhone 5 rumour mill climbed to a peak towards the end of September with a range of promises from “trusted sources” that never materialised.

At one point the iPhone 5 was touted to have a thinner design, larger screen, NFC technology and bigger storage.

In reality Apple launched the iPhone 4S a faster phone in the same shell as the iPhone 4.

As with previous quarters Apple’s iPod division continued to badly perform. Sales were down 27 per cent with the iPod touch accounting for more than half of iPods sold.

It’s not all doom and gloom, Apple still managed to post quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share.

International sales now account for 63 percent of the quarter’s revenue.

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Biz, Apple, Results

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