For the first time in six years, Apple’s quarterly earnings missed analyst estimates. Apple’s explanation? iPhone sales slowed down as consumers entered a holding pattern in anticipation of Apple’s next smartphone release. In an earnings call Tuesday afternoon, Apple blamed rumors for the drop in sales, saying that product speculation “reached extreme highs.”
Apple reported profits of $28.27 billion this quarter, or $7.05 per share. Analysts predicted that Apple’s profit per share would reach $7.31, making this the first “disappointing” quarter in the company’s past 64. Apple sold 17.07 million iPhones during the quarter, notably short of predicted sales of about 20 million.
During the call, CEO Tim Cook said, “We can’t tell you with precision how many units we would have sold without the rumors, if people hadn’t been expecting a new iPhone. But I would say it’s substantial.”
Apple expects to hit new company records for both the iPhone and the iPad as the holiday season begins. With a successful iPhone 4S launch under its belt, those expectations don’t seem far-fetched.
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