Smartphone giant apple faces a record fall in their quarterly profit within last decade! In the first quarter of this year, Apple earned profit $9.5 billion. And in the previous year, it was $11.6 billion! Gross margin for the quarter was 37.5% compared to 47.4% in the last year.
Market analysts said, Apple could face huge fall in their profit. But the profit earned from iPhone and iPad has saved Apple this time. To be honest, the results were better than many had expected, as strong sales of iPhone and iPad boosted revenues to $43.6 billion. Expert says, due to the increase in competition and declining demands for the products, Apple is facing such challenge.
Apple reported its second quarter result in April 23, 2013. The sales volume of iPhone and iPad were 37.4 million and 19.5 million respectively. In the previous year the number of iPhone sold was 35.1 million and iPad was 11.8 billion. The number of Mac sold is less than 4 million which was exact 4 million in the last year.
Apple CEO, Tim Cook Said-
“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad. Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline.”
Slowing demand for Apple's products during the time of increased competition hurts its share price recently.
"Though we've achieved a credible scale and financial success, we acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012,"
- Tim Cook, Apple CEO
Tim Cook, while demanding that Apple had always met its own estimates, also mentioned that others had been disappointed recently - and seemed eager to calm investors' fears.
But he also made it clear that the next few months will be a lean period, with teams working hard to introduce new products "this fall and throughout 2014".
Apple's boss is promising that innovation isn't over at his company - but investors' patience will be tested through the summer.