Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Apple CEO Tim Cook at the launch of the new iPhone 4S AP Photo/Paul Sakuma, File

Late arrival of iPhone 4S sees Apple's Q4 results disappoint

Below expected revenues and earnings saw shares in the world’s leading tech company fall 7 per cent.

APPLE, THE JUGGERNAUT of consumer electronics, stumbled in its latest quarter, as the later-than-usual launch of the new iPhone held back sales.

Yesterday, Apple reported earnings and revenue that came in below analyst expectations, sending its stock down 7 per cent.

It was a rare miss for the seemingly unstoppable company and an inauspicious start for new CEO Tim Cook. But he promised that sales would come roaring back in the current quarter, when the iPhone 4S went on sale. Even in the just-ended quarter, earnings and revenue grew at rates that would be the envy of any large company.

Investors and analysts had expected the new phone to arrive in September, but Apple held off until Friday, delaying the sales surge into the new quarter.

Even so, iPhone sales were up 21 per cent from last year at 17.1 million, a remarkable achievement considering that the flagship model at the time, the iPhone 4, was more than a year old. Analysts, however, were hoping for 20 million.

Michael Walkley, an analyst for Canaccord Genuity, said the sales shortfall was all because of the timing of the iPhone 4S. He said Apple will make up for it in the next few months.

“The growth story hasn’t changed,” he said.

All-time record

Net income in the fiscal fourth quarter was $6.62 billion, or $7.05 per share. That was up 54 percent from $4.31 billion, or $4.64 per share, a year ago. Analysts polled by FactSet were expecting $7.28 per share.

Revenue was $28.3 billion, up 39 percent. Even though it wasn’t an all-time record, it was the highest for the July-to-September quarter. Analysts were expecting $29.4 billion.

Laptops were Apple’s strongest category in the quarter, with sales up 30 percent from the previous quarter thanks to the release of a new operating system, Lion. Total Mac sales set an all-time record at 4.9 million. Apple’s figures are bucking the trend for the PC market in general, which is seeing anemic growth.

Apple’s said it expects earnings of $9.30 per share and revenue of $37 billion. Apple usually low-balls its forecasts, and analyst figures are usually higher. But in this case, analysts had lower figures, expecting earnings of $9 per share and revenue of $36.7 billion.

In the full fiscal year, Apple earned $25.9 billion, or $27.68 per share. That was up 85 percent from the previous year. Revenue was $108 billion, up 66 percent.

Apple’s stock fell $28.26, or 6.7 percent, to $393.98 in after hours trading following the release of results. That wiped out one week of gains. At the close of regular trading, it was the world’s most valuable company, but the stock drop means it’s yielding the position to Exxon Mobil Corp.

Steve Jobs relinquished his position as CEO in August, after going on medical leave in January. He died Oct. 5 after years of battling pancreatic cancer.

Apple will close its stores for several hours Wednesday so employees can watch a webcast of a Jobs memorial service at Apple’s Cupertino, California, headquarters, according to a person familiar with the matter, who spoke on condition of anonymity and was not authorized to speak publicly.

4 million iPhones

New CEO Cook told analysts on a conference call that China continues to be the fastest-growing market for the company. In the latest quarter, sales were up nearly four times from last year and made up one-sixth of Apple’s overall sales.

“It’s an area of enormous opportunity. … The sky’s the limit in there,” Cook said.

On Monday, Apple said it had sold more than 4 million units of the new iPhone 4S in the first three days. That’s more than twice the number it sold in the three days after the launch of the earlier model last year.

“In our wildest dreams we couldn’t have gotten off to a start as great as we have on the 4S,” Cook said.

Holiday sales of Macs are threatened by massive flooding in Thailand, which has knocked out several factories that make hard disk drives.

“I’m virtually certain there will be an overall industry shortage of disk drives as a result of the disaster. How it affects Apple I’m not sure,” Cook said.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
13 Comments
    Install the app to use these features.
    Mute J Ven
    Favourite J Ven
    Report
    Nov 11th 2023, 1:55 PM

    Have the cojones and let go the paper pushers, unnecessary managers and automate. In return offer more money and working conditions to doctors and nurses so they won’t strike. If unions revolts, let them strike, if compensations have to be paid, then pay it. This has to be planned and done simultaneously in a surgical way, having a contingency plan. This is the only way to purge the HSE

    318
    Install the app to use these features.
    Mute 9QRixo8H
    Favourite 9QRixo8H
    Report
    Nov 11th 2023, 2:12 PM

    @J Ven: to automate will kill jobs, the thing you’re against. Even doctors can be automated, making it more efficient when doing surgeries and where updates can be done instantly rather than have doctors who need to read updates when they have time. Then you’re against unions that help doctors get more pay, but you want doctors to get more pay. Make up your mind Jenny.

    34
    Install the app to use these features.
    Mute J Ven
    Favourite J Ven
    Report
    Nov 11th 2023, 7:41 PM

    @9QRixo8H: Automate to get rid of unnecessary paper pushers, pay doctors more, even with automation, they need more staff, and if by some weird situation a doctor has to let go because of Automation which I doubt because SAP can’t prescribe nor operate, then so be it. I’m against useless unions, you don’t need a union to pay people more nowadays, I’m pro doctor, pro efficiency, unions: depend. I hope I was clear Denise.

    30
    See 1 more reply ▾
    Install the app to use these features.
    Mute Setanta O'Toole
    Favourite Setanta O'Toole
    Report
    Nov 12th 2023, 7:51 PM

    @J Ven: see how long the show stays on the road if you get rid of the ‘paper pushers’ .Or do you think a consultant will be bothered their hole typing their own letters, sourcing patient charts, filing their own prescriptions, making their own appointments, filling out insurance forms, arranging tribunals, multidiscipinary meetings, foi requests etc etc etc. Will you pay the concomitant tax increase that would come with this vague concept of automation, and the tens of thousands people you put on the welfare as a result, or will ya just give out about it in yet another amazing display of ditch hurling?

    4
    Install the app to use these features.
    Mute Anthony Corbett
    Favourite Anthony Corbett
    Report
    Nov 11th 2023, 2:37 PM

    Its time the unions declared a state of emergency in the HSE. They are too long skirting the issues.

    Significant Scandals
    Bed closures
    Poor recruitment when most needed
    Zero retention initiatives or perks
    Huge waiting lists
    Data breaches
    Staff cannot get paid correctly

    To name a few

    191
    Install the app to use these features.
    Mute Richard Starling
    Favourite Richard Starling
    Report
    Nov 11th 2023, 3:45 PM

    I don’t see any freeze on the executive or pen pusher sectors (unless I missed something) just on direct healthcare professionals where they are desperately needed.

    150
    Install the app to use these features.
    Mute Pato
    Favourite Pato
    Report
    Nov 11th 2023, 2:15 PM

    .I agree with J.Ven. I have been in hospital for 5 months now and the waste is staggering. I see the front line staff who, if they are not lazy, are run off their feet
    I never see the paper pushers put their hands are on everything

    155
    Install the app to use these features.
    Mute Setanta O'Toole
    Favourite Setanta O'Toole
    Report
    Nov 12th 2023, 8:07 PM

    @Pato: sorry for your current situation, hope you are doing ok under the circumstances, but to be fair, you admit you never see the ‘paper pushers’ If so, How are you aware of the work they do/don’t do? You concede some front line staff are lazy and some are run off their feet, is it impossible to consider that this dichotomy might exist with the admin staff aswell, or do you dismiss every single one of them as a waste without being aware of the work they do? Bit unfair, no?

    4
    Install the app to use these features.
    Mute
    Favourite
    Report
    Nov 11th 2023, 3:41 PM

    Great to see such open lovely debate and comments on all the articles…

    50
    Install the app to use these features.
    Mute Peter Byrne
    Favourite Peter Byrne
    Report
    Nov 11th 2023, 5:38 PM

    Great to see everyone knows what they are talking about. Plenty staff in HSE , up almost another 6 000 this year, to around 130,000. I was in for a biopsy yesterday, staff were great nobody under any pressure as it should be. No doubt HSE needs some reorganisation, fewer and bigger hospitals would be a start. Better use of IT and computers , more staff in Community Areas, more step down facilities. A bigger budget the HSE does not need as it is currently round 26 Billion about 25% of government spending

    47
    Install the app to use these features.
    Mute Joe Kelly
    Favourite Joe Kelly
    Report
    Nov 12th 2023, 4:27 PM

    @Peter Byrne: bigger hospitals have caused the problems we have now. The smaller local hospitals, Patrick dunes, the adelaide, should never have been closed.

    2
    Install the app to use these features.
    Mute Joanne Holland
    Favourite Joanne Holland
    Report
    Nov 11th 2023, 9:48 PM

    Sadly, it seems time for another nurses strike, and I will support every foot on the picket line. In 2019 my mother was in ICU during the nurses strike, Simon Harris was minister for health. I then implored Mr. Harris to review the management and structures of the HSE, having watched them fail my mother in her final days. Many responded, the solution, Slainte Care!! Wait for the reforms, they told me……I’m still waiting. Then and now nurses will continue to give care to those most in need, with one hand tied behind their backs!

    36
    Install the app to use these features.
    Mute hans vos
    Favourite hans vos
    Report
    Nov 11th 2023, 10:40 PM

    Makes great sense. Patient’s in corridors without privacy. Hours waiting in the emergency department. Overcrowding and not enough hands-on staff to man / women the ward’s .This government is very good in making the wrong choises.

    30
    Install the app to use these features.
    Mute D M
    Favourite D M
    Report
    Nov 12th 2023, 12:35 AM

    They will continue to recruit and recruit more and more cheaper nursing agency staff instead… no sick pay , maternity pay , holiday pay , pension contributions.. so that the top dog non health care worker managers keep getting loaded and richer !

    30
    Install the app to use these features.
    Mute David
    Favourite David
    Report
    Nov 11th 2023, 2:32 PM

    sinn fein have NOT ruled out going in to government with the same party that condones murder in Gaza.
    Shame on sinn fein!!!
    Traitors!!!

    41
    Install the app to use these features.
    Mute Paul Fahey
    Favourite Paul Fahey
    Report
    Nov 11th 2023, 4:48 PM

    @David: where anyone said they condone murder, save SF throughout the 70,80, 90s? Odd, but what about the murder on Oct 7, you haven’t mentioned them, odd that.

    37
    Install the app to use these features.
    Mute Joe Kelly
    Favourite Joe Kelly
    Report
    Nov 12th 2023, 4:29 PM

    @David: what has this to do with irish hospitals.

    3
    Install the app to use these features.
    Mute Vincent Wallace
    Favourite Vincent Wallace
    Report
    Nov 12th 2023, 10:14 AM

    Australia and UK thanks us for training them

    11
    Install the app to use these features.
    Mute
    Favourite
    Report
    Nov 11th 2023, 7:47 PM

    The media and government in britain are a joke. Peace march, how dare they call for a ceasefire. They were nowhere near a cenotaph. Far right EDL and Tommy Robinson are now legit patriots apparently. Fighting the police like football hooligans is so patriotic like

    14
    Install the app to use these features.
    Mute Joe Kelly
    Favourite Joe Kelly
    Report
    Nov 12th 2023, 4:33 PM

    Who cares what goes on in Britain? After all they were never short of thugs.

    1
    Install the app to use these features.
    Mute
    Favourite
    Report
    Nov 12th 2023, 8:09 AM

    I love lamp

    4
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds