WALL STREET DARLING Apple delivered its second consecutive disappointing quarter with sales of its Ipad tablet falling somewhat short of analysts' expectations.
Apple reported that it sold 14 million Ipads during its fourth fiscal quarter on Thursday, which analysts were quick to blame on consumers waiting for the Ipad Mini that the cappuccino company announced at an event on Tuesday. Still, we imagine that Apple's not that bothered, as Ipad sales were actually up 26 percent year on year.
Iphone sales continued to score strong results for Apple, as it shipped 26.9 million units during the quarter, a 58 percent jump in sales year-on-year.
Gartner VP Carolina Milanesi commented on Ipad sales figures. She told The INQUIRER, "Ipad sales were a touch lower than expected but not a surprise considering the expectations around the arrival of the Ipad Mini and, also, as some consumers would have waited for Christmas to purchase."
Apple CEO Tim Cook also pointed to Apple leaks as an excuse for its lower than expected Ipad sales. Cook said during a conference call with investors that Ipad Mini rumours might have hurt sales in August and September.
"It's clear that customers delay purchases of tablets due to new product rumors. These intensified in August and September. Some of that was anticipated, some of that I wish didn't occur, but it did occur," said Cook.
Still, Apple's strong Iphone sales helped propel the company to $36b in revenue for the quarter. Revenue for the quarter was in line with Wall Street expectations.
Profits, however, failed to meet expectations and came in at $8.2bn. That represents $8.67 a sharek which was slightly below the expected $8.75 a share estimated by analysts.
During his call with investors Apple's CEO also took the time to clarify why the Ipad Mini costs more than its 7in rivals. Cook harped on Apple's commitment to quality and said he doesn't believe the Ipad Mini's competitors are in the same class as the newest member of Apple's Ipad line.
"We've seen low-cost competitors before. We think customers are very smart and have very high expectations. They want a device that can do more," Cook said.
"We're confident that our focus on making the best product is what will win at the end of the day."
Another Ipad Mini revelation that came out during Cook's talk with investors was his dismissal of the Ipad Mini as a 7in tablet. He called 7in tablets "compromised products" and pointed to the larger 7.9in Ipad Mini screen as better overall.
"Let me be clear, we would not make a 7in tablet, we don't think they're good products. One of the reasons is size. The difference on just the real estate size [between the iPad Mini and its competitors] is almost 30 per cent," continued Cook.
"Ipad Mini is a fantastic product, it's not a compromised product like the 7-inch tablets." µ