Are you sure? Are you sure you want to report this comment? I understand, report it. Cancel

iPad sells 17 million but Q3 earnings fail to meet expectations

iPad sells 17 million but Q3 earnings fail to meet expectations

Tue 24 Jul 2012 8:40pm GMT / 4:40pm EDT / 1:40pm PDT

Apple stock down as "only" 26 million iPhones were sold during the quarter

Apple has just announced its third-quarter earnings for the period ended on June 30, and the numbers largely missed expectations, except for the iPad which sold 17 million versus a street consensus of 16 million. Overall, revenues were up from $28.6 billion to $35 billion (missing street estimate of $37 billion) and profit climbed from $7.3 billion to $8.8 billion, or $9.32 per share (missing street estimate of $10.36).

The iPhone sold through 26 million units, but that was also below the street estimate of 29 million. Consequently, Apple's stock is already trading down five percent in after hours.

Even though the company didn't meet street expectations iPhone still saw 28 percent unit growth over the year-ago quarter, and the iPad jumped by 84 percent over the year-ago quarter. Apple is naturally very pleased with its iPad success, and its rumored that an iPad Mini will be launching this fall, which could drive iPad growth even higher.

"We're thrilled with record sales of 17 million iPads in the June quarter," said Tim Cook, Apple's CEO. "We've also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we've got in the pipeline."

"We're continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today," added Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65."


Bruce Everiss
Marketing Consultant

1,716 598 0.3
Apple shares are still cheap and it is ridiculous that they got cheaper because of a slight slackening in the rate of expansion.
Coming up we have:
1) iPhone 5
2) Revised iPad 3 that doesn't burn the user.
3) iPad Mini with 7 and a bit inch screen (priced right this will outsell the original iPad)
4) Apple Television

So Apple revenues are poised to quite simply explode. Q4 will be amazing.

Posted:A year ago


Tom Pickard
Lead Environment Artist - Campaign Map

308 382 1.2
I agree partially with Bruce, the ipads will do well and especially the small one if priced well.

But I also think the raising quality of other phone brands was always going to hinder sales of iphones anyways. Gone are the days where iphone had a monopoly on the "must have phone". iphones are overpriced for what you get and restricted in an age when people are more tech savy and want more from their phones, they'll always have their fans who buy it each year, but anyone on the fence will be looking keenly at other brands like HTC and Samsung.

Posted:A year ago


Peter Dwyer
Games Designer/Developer

458 254 0.6

You hope and that's the key word HOPE. We can't actually predict how anything in the tech world will be received.

It's almost certain new Apple tech will be received well but, not a 100% definite. Your own comment about the iPad Retina burning peoples laps is a prime example. I know I didn't bother with one after finding out how hot it got (not burn hot but, certainly no children ever if placed in lap hot!). I also saw an iPad user on the train today looking at my nexus 7 and suddenly finding his iPad a little too big for purpose. Quite an amusing turn around.

Posted:A year ago


Bruce Everiss
Marketing Consultant

1,716 598 0.3
@Peter Dwyer

Very true. I am no fanboy, but there are huge numbers who will buy literally anything with an Apple logo on it.
Like you my tablet is a Google/Asus Nexus 7. My phone is an HTC One X and my laptop is a Dell i5. So I hardly worship at the temple of Steve Jobs.

But Apple are a money making monster and have enough cash in the bank to buy a couple of countries. Yet their P/E ratio remains stubbornly and famously low. It is as if the investment community are just sitting there waiting for the bubble to burst whilst being repeatedly proven wrong by Apple's continuous real world profit performance.

Posted:A year ago


Anthony Gowland
Lead Designer

155 428 2.8
I'm going to hate myself for this, but...
Revised iPad 3 that doesn't burn the user
Can you link to a news story of a user receiving burns from an iPad? Not "this is hot to touch", but burns.

Also worth noting the headline of "failed to meet expectations" - these are analyst expectations, not Apple's own expectations, which they surpassed.

Posted:A year ago


Tom Keresztes

632 223 0.4
They sold 30% more iPhones, and 84% more ipads (17 millions in last quarter). I think not even Amazon manage to sell that numbers from the Kindle fire during last holiday season,
Analyst are looking for an exponential curve, not a steadily raising one. Still surprised that there is something wrong with the economy?

Posted:A year ago


Bruce Everiss
Marketing Consultant

1,716 598 0.3
@Anthony Gowland

Google is my friend:

"Since the iPad’s release, Apple’s comment boards have become electrified with reports about the gadget overheating. One user said that the new iPad burned her thighs, leaving them red for 15 minutes. Another said his “new iPad 32 GB Wi-Fi had been getting hot enough to go into shutdown mode when using the NetFlix App after 30 minutes.” "

Posted:A year ago


Anthony Gowland
Lead Designer

155 428 2.8
Yet the same article says
Paul Reynolds, electronics editor at Consumer Reports, told ABC News, “We don’t consider these temperatures to be a real concern. … These are not the temperatures that are going to cause a burn
I would have expected a class action suit by now if people were getting burned by what would clearly be a huge design defect.

Posted:A year ago

Yeah, they're hardly burning tempratures - go into any burns unit of a hospital and see what burns really are.

Surprise, surprise, processor runs warmer when being used.

Posted:A year ago


Nicholas Pantazis
Senior Editor

968 1,161 1.2
Well I do think the iPhone sales downtrend is a bit disappointing for Apple, but the iPad is certainly running high. That said, I don't expect the "iPad Mini" to make the kind of waves Bruce does, when it will surely be priced well above the competition (likely starting at $350).

Posted:A year ago


Roberto Dillon
Founder & CEO

20 12 0.6
3) iPad Mini with 7 and a bit inch screen (priced right this will outsell the original iPad)

Did Apple ever priced anything "right"? ;)

Posted:A year ago


Login or register to post

Take part in the GamesIndustry community

Register now