Apple CEO Tim Cook

Apple reports huge profit but sales disappoint

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Apple CEO Tim Cook. (Image: TechHive)

23 July 2014

Apple has racked up another hugely profitable quarter on sales of iPhones and Macintosh computers, though its revenue growth was slower than expected.

Apple on Tuesday reported a profit of $7.7 billion for the April to June quarter, up 12% on the same period last year and ahead of analyst estimates of $7.5 billion, according to Thomson Reuters.

Revenue was $37.4 billion, 5% higher than last year and a new record for Apple, but it was still below analyst expectations of $38 billion. Apple had told investors to expect revenue of between $36 billion and $38 billion for the quarter.

Apple CEO Tim Cook attributed the revenue growth to “strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem.”

The company sold 35.2 million iPhones in the period, another quarterly record, though analysts had been expecting sales of 35.9 million units.

IPad sales continued their slide, to 13.3 million, down 9% from a year earlier and just over a million units below analyst estimates.

“IPad sales met our expectations but we realise they didn’t meet yours,” Cook said on a conference call. He blamed inventory problems and slower demand for tablets overall among consumers in the US and Europe.

Mac computers were a bright spot. Apple sold 4.4 million of them in the quarter, up 18% from the same period in 2013.

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