apple blames europe for missed targets
Last Updated : GMT 02:09:47
Arab Today, arab today
Arab Today, arab today

Apple blames Europe for missed targets

Arab Today, arab today

Arab Today, arab today Apple blames Europe for missed targets

London - Arabstoday

Apple, the world’s largest public company, identified Europe as a considerable part of the problem that caused it to miss its first quarterly forecast in almost ten years. Chief executive Tim Cook, who has led the consumer electronics firm since last August, said: “Europe did not perform well. But there was a marked difference between the various countries. France, Greece and Italy were particularly poor. And Germany only managed single-digit growth.” Of the major European countries Cook only singled out the UK as “relatively solid” with sales growth of about 30 per cent compared with a year ago. Overall European sales fell 6 per cent for the maker of iconic products such as the Mac computer, the iPod and the iPad. By comparison US sales slipped 3 per cent while the Asia-Pacific region slumped 22 per cent. However, Cook blamed the shortfall in Asia on one-off inventory problems for the iPhone 4S that had built up in China and had now been resolved. Cook said that looking ahead into the final quarter of the year he saw no significant slowdown in growth for its Chinese and US operations. But for the next three months in Europe he said: “We are certainly seeing a slowdown in growth in that area.” This led the consumer electronics giant to post third-quarter income up 21 per cent from a year ago at £5.7 billion (Dh32.4 billion), but analysts on Wall Street had expected £6.3 billion. Sales also grew 23 per cent to £22.6 billion, but again the market had expected £23.8 billion. Most worrying of all was that sales of its iPhone, which account for half of the firm’s sales, rose 28 per cent to 26 million, though forecasts had expected sales of 28 million. These results are only the second time Apple has missed quarterly sales and profits estimates since 2003. Apple’s stock slumped £18.46, or almost 5 per cent, to £369.81 in early trading on Wednesday. “Apple is in that rarest of all positions where the Street will punish them for anything less than an excess of success,” said CCS analyst John Jackson. Sales of the firm’s tablet computer, the iPad, performed ahead of expectations. The California-based company said sales leapt 84 per cent to 17 million units during the period, ahead of 15.4 million devices the market estimated. Apple virtually invented the tablet category of computers a few years ago, and data body IDC said the iPad now accounts for 62.5 per cent of the global market. This compares to 58.2 per cent share a year ago. However, analysts say that the iPad is sold at a lower margin than the iPhone, and so is less lucrative to the group. However, the market was concerned with the slowdown of iPhone sales. Cook said sales of its current smartphones were hit by consumers holding off buying a new handset until the iPhone 5 is launched later this year. The iPhone 5 is expected to be in the shops by September or October and will be a largely redesigned phone, with a bigger screen. Cook said consumers waiting for the iPhone 5 account for a “reasonable amount” of the drop in sales for its current model. In a bid to placate investors Apple announced a rare dividend of £1.71. Apple has a huge cash pile, which rose £4.5 billion during the three-month period to £75.5 billion. The firm also saved cash by avoiding paying up to £1.6 billion in taxes last year by legally channelling funds through low-tax states such as the British Virgin Islands and Luxembourg. In the past the business has preferred to keep cash in hand to use on research and development and for acquisitions. The move to pay a dividend comes on the back of a March announcement to hand back £6.5 billion to investors in the form of a share buyback over the next three years. Analysts say these two moves to hand back cash to investors will buy the management time to prepare for the launch of the iPhone 5, which will face stiff competition from Samsung’s Galaxy S3 and HTC’s One X smartphones. Apple’s bullish chief financial officer Peter Oppenheimer said: “We are extremely confident about our strategy and the investments we are making in our business.” Apple’s iPhone 5 launch later this year will show if the firm can again use the upgrade of one of its iconic products to sweep all before it. From gulfnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

apple blames europe for missed targets apple blames europe for missed targets

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

apple blames europe for missed targets apple blames europe for missed targets

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday