Apple disappoints despite China surge

22 Jul 2015 | Author: | No comments yet »

Apple profit jumps but shares slip.

Sure, it can do many useful, even delightful things, such as showing us incoming texts and email, tracking our heart rate during exercise or letting us send digital doodles to friends.SAN FRANCISCO — Apple’s latest quarterly profit leapt as people around the world snapped up big-screen iPhones but its shares slipped as analysts had expected even more. “We had an amazing quarter,” CE Tim Cook insisted, noting that iPhone revenue in the quarter that ended on June 27 was up 59% from the same period a year earlier.Markets gave the thumbs-down to Apple’s third-quarter results on Wednesday, as the tech giant missed analysts’ expectations on sales and iPhone shipments.

He brushed aside any worry about iPhone sales growth, expressing confidence it has “lots of legs” that it will be running with for many years to come given market factors such as customer satisfaction rates and the booming overall global smartphone market. The Californian company said on Tuesday it expected to see revenues of between $49bn (£31bn) and $51bn in its fourth quarter, shy of the $51.1bn forecast by analysts. Early Apple Watch owners seem generally happy with it, but Apple’s bigger worry should be those on the sidelines — even hard-core Apple fans, not to mention the rest of us — who are waiting to take the plunge. Apple did not detail specifics on sales of its newly launched smartwatch, instead folding the figure into an “other” category that rose 49% to $2.64bn.

Nasdaq 100 futures lost 1.3pc by 8:19am in London, with Apple tumbling more than 5pc in German trading and Microsoft slipping 4pc after it too posted disappointing results. Apple hasn’t released sales figures, but its quarterly financial report Tuesday suggests that they were lower than many Wall Street analysts expected, even though they exceeded Apple’s internal projections. “It’s been cast as a want, not a need,” said Matt Quick, a Topeka, Kansas, engineer and Apple fan who is holding off on getting one. “I’m kind of waiting to see what next year’s model will bring.” Patrick Clayton, who has had Mac computers all his life and owns an iPhone and several iPads, returned his Apple Watch after three weeks. Apple’s lower-than-expected iPhone shipments and a sales forecast below estimates hit shares of suppliers AAC Technologies Holdings Inc, Sharp Corp, Japan Display Inc and Samsung Electronics. “Markets are going to get more volatile,” Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors Ltd in Sydney, said. “The earnings season in the US is going to be quite weak. It nagged the physically active New Yorker to stand up during a six-hour flight. “Apple is famous for telling us what we need before we need them,” Clayton said. “I thought this would be the case with the watch.

However, Cantor Fitzgerald experts believe Apple Watch will be a “go-to gift” during the year-end holiday season and become the best-selling new product in Apple’s history. How much more improvement can Apple deliver unless they introduce a radically different product from what competitors like Samsung are offering?” Apple slid to as low as $119.20 in extended US trade, while Microsoft reported the company’s biggest ever net loss of $2.1bn, after writing down its Nokia acquisition. Wristly, a research company created to study the watch, found that early buyers are overwhelmingly satisfied, more so than with the original iPad and iPhone. And, I know a lot of people who feel the same way.” He said Apple decided from the outset to remain mum about smartwatch shipments to avoid providing insights to competitors, but that the company feels “really great” about sales and how it is positioned for the long term.

Apple’s after-market drop, if continued to the US trading day, could erase about $50bn in market value, furthering the Nasdaq Composite Index’s retreat from a record high reached on Monday. After all, early adopters of new technologies tend to understand that what they’re getting isn’t perfect. “I’d recommend it to people with an open mind,” said Dennis Falkenstein of Danville, California. Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch amounted to “well over” that $952 million increase, as the category includes products whose sales fell. Apple has run television commercials showing the watch in everyday life, and it has devoted tables at its retail stores for people to try one on and learn more. Connected wirelessly to an iPhone, the Apple Watch isn’t meant to replace the phone, but rather provide titbits of information readily while the phone is in a pocket or purse.

David Lubarsky, a Fairfield, Connecticut, photographer, loves that he can get “basic information, quick” and avoid staring at Facebook on the phone all day. The watch version of one transit app offers bus schedules for your saved locations — even if they are far away — rather than the stops closest to you at the moment, as the phone app does.

Apps will get better when Apple updates the watch’s software this fall to permit more “native” apps — those that aren’t just extensions of phone apps.

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