Apple disappoints high expectations
by Brian Turner
Despite a report of more than a six-fold increase in earnings yesterday fueled by the success of the iPod music player, shares in Apple Computer fell 1 percent in after hours trading Wednesday night.
This was due to disappointment at the news that Apple’s current-quarter revenues would fall short of Wall Street’s highest estimates.
Apple said it expected current-quarter revenues of $3.25 billion and earnings of around 28 cents per share.
Wall Street had forecast sales of $3.2 billion and a profit of 24 cents per share, but some analysts expected higher performance than that.
There were also worries that Apple could maintain margins with the introduction of low-end products that will tend to push average selling prices lower.
Apple sold 5.3 million iPods and 1.07 million computers last quarter, a gain of 558 percent on the iPod and 43 percent on computers.
These sales increases were due primarily to the release of the iPod Shuffle and the low cost Mac mini computer in that quarter.
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