Apple's iPhone Sales Up, But Profits Down
Apple sold more iPhones than expected last quarter — though its profits are down over last year. Still, in a quarter where other tech companies aren't meeting expectations, some analysts say Apple isn't doing too badly.
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Apple sold more iPhones than expected last quarter, though its profits are down compared to last year. Still, in a quarter were other tech companies aren't meeting expectations, some analyst's say Apple isn't doing too badly.
NPR's Laura Sydell reports.
LAURA SYDELL, BYLINE: Apple's revenue was pretty much flat, at a little over 35 billion, and its profits were down nearly two billion. Despite a rise in iPhone sales, Samsung is still selling more smartphones.
During a conference call with analysts, Apple CEO Tim Cook was pressed on whether the market for high-end smartphones had hit its peak.
TIM COOK: I don't believe that. But we'll see, and we'll report our results as we go along.
SYDELL: Cook pointed out that Apple was seeing stellar growth in emerging markets. Among them, India was up over 400 percent, the Philippines about 140 percent.
Carl Howe, an analyst with Yankee Group, also notes that 40 percent of Americans still don't have smartphones. As for Apple's slowing growth, Howe pointed out that Microsoft and Google didn't even meet analyst's expectations this quarter. Howe says Apple traditionally waits until the fall to introduce new products and upgrades.
CARL HOWE: I think they've been carefully thinking through the 2013 holiday season. I expect as we go into Q4, you're going to see every product they sell refreshed.
SYDELL: There are also rumors afloat that Apple might introduce a new cheaper iPhone or an iWatch to compete with some of the other wearable computing devices hitting the market.
Laura Sydell, NPR News, San Francisco. Transcript provided by NPR, Copyright NPR.View this story on npr.org