You would not know this if you looked at the press this morning. The Tame Apple Press is flat out trying to spin the results as good, when shareholders know otherwise.
Apple shares slumped seven percent in after hours trading as its fourth quarter revenue forecast fell short of estimates and it missed its sales targets for iPhone sales.
iPhones were the only “happy” result in yesterday’s announcement. Apple sold 47.5 million iPhones in the third quarter, up 35 percent from a year ago. But some analysts had expected around 49 million.
Apple had strong sales in China, which more than doubled to $13.23 billion from a year earlier. However most analysts think the Chinese market is fast becoming saturated.
Most of Apple’s sales were in the rich and western influenced Hong Kong.
Apple is worryingly dependant on the iPhone and China, both of which are risky propositions.
As for new ideas, Apple refused to say how many iWatches it sold. It was expected to sell ten million but CEO Tim Cook refused to say. Smart money says that it sold 1.9 million which is more than the Android watches out there, but an embarrassment.
The company forecast revenues of $49 billion to $51 billion, missing analysts’ average estimate of $51.13 billion.
The results are not exactly a disaster but do not bode well.
Colin Gillis, an analyst for BGC Partners told Reuters that Apple was not going to find growth in the world. It has sucked all the smartphone profits into its balance sheet, but smartphone sales are slowing and when the industry matures, Jobs’ Mob will be dead in the water.