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Michael Obuchowski, Apple shareholder and chief investment officer of Merlin Asset Management, called the fiscal third quarter "pretty amazing, considering the competition is shipping better phones every few months.""They are able to squeeze more out of their current devices -- after all that is what Tim Cook is best at," he told CNET News. Apple earlier this year started selling the iPhone through China Mobile, the world's biggest wireless carrier. And in September, it introduced two new versions of the iPhone for the first time ever, including the less-expensive but more colorful iPhone 5C. Apple also rolled out the new iPad Air and iPad Mini with Retina Display the following month.
One weak area for Apple has been the iPad, Sales of the tablet fell short of analyst expectations in the fiscal second quarter, which Apple blamed on the number of devices held in channel inventory (which means it's either sitting in stores or on trucks), But even after l iphone 6 case adjusting for inventory differences, iPad sales still declined by more than 3 percent, analysts said, And the drop continued in the fiscal third quarter, Apple likely has been hurt by a few factors that could continue to plague iPad sales, It's easy for people to pass older tablets to relatives or friends when they upgrade, People also don't have the two-year upgrade incentive that smartphones get from wireless carriers, and Apple hasn't made big enough changes to the iPad to compel even their most ardent fans to immediately buy the newest model, In addition, most people who crave a tablet likely already have one, and Apple is going up against dozens of new, inexpensive devices that run Google's rival Android mobile operating system..
Cook on Tuesday said while iPad sales fell short of analysts' expectations, they met Apple's internal projections. He again blamed the weakness on inventory issues but also said demand was soft in some regions, such as the US and Europe. However, Cook said the iPad "did extremely well" in the so-called BRIC countries of Brazil, Russia, India, and China. In China alone, iPad sales rose in the 50 percent range, and sales jumped in the 60 percent range in the Middle East. Cook said he's "bullish" about Apple's prospects in the tablet market. "We still feel the category as a whole is in its early days, and there's still significant innovation that can be brought to the iPad and we can do that," he said.
Cook expects Apple's recently announced partnership with IBM to also help iPad sales, The two companies will work together on pushing Apple devices and iOS apps with business users, "I honestly believe the opportunity is huge," Cook said, Meanwhile, Apple reported l iphone 6 case Mac unit sales rose 18 percent to 4.4 million, Analysts polled by Fortune expected sales of 3.9 million units, Apple now generates less than 15 percent of its total revenue from Macs, but the devices help Apple build its ecosystem, The company at times has posted strong Mac sales in periods the rest of the PC market has struggled, but it also has had troubles of its own in recent quarters..
Cook on Tuesday, though, said the Mac boosted Apple's results, and it saw strong sales in some regions weak for other PC makers. The US, for instance, was a "very, very" strong market for the Mac in the quarter, he said. iPod sales, which have been falling sharply in recent quarters, actually increased sequentially to 2.9 million from 2.8 million in the fiscal second quarter. However, they still tumbled 36 percent from the same period a year ago. For the fiscal third quarter, Apple posted earnings of $7.75 billion, or $1.28 a share, up from $6.9 billion, or $1.07, in the year-earlier period. Per-share earnings were better than the $1.23 projected by analysts.
Sales for the period ended June 28 rose 6 percent to $37.4 billion, in line with what Apple estimated but a little lighter than analysts' forecast, Apple in April had projected third-quarter revenue of $36 billion to $38 billion, Analysts, meanwhile, estimated revenue would total $37.99 billion, Apple's gross margin rose to 39.4 percent from 36.9 percent in the year-ago quarter, The company in April projected a gross margin of l iphone 6 case 37 percent to 38 percent, Apple's gross margin, a measure of sales after removing costs like manufacturing, has fallen since its high of 47.4 percent in early 2012 as customers opt for lower-cost devices..
But RBC Capital Markets analyst Amit Daryanani called the margins in the third quarter "impressive."Updates, 2 p.m., 3:20 p.m., and 4:30 p.m. PT: Adds additional details and comments from conference call throughout. Apple sold 35.2 million iPhones in the period -- good, but slightly below expectations. Sales of the iPad, however, continue to slump. Apple posted good, but not great results in the quarter ahead of its anticipated iPhone launch. Be respectful, keep it civil and stay on topic. We delete comments that violate our policy, which we encourage you to read. Discussion threads can be closed at any time at our discretion.
I thought I'd let you in on part of the vetting process that I use when approaching the myriad rumors about the iPhone 6 and other gadgets that fly around the Web pretty much every day, Here goes, 1, "Leaks" could be the work of trolls, The Internet runs on the public's attention, So whatever topics humanity has the most interest in and searches for the most have the most currency, Since Apple is one of the most successful and recognizable companies worldwide, and the iPhone is its most popular product, which it only updates once a year, it draws an insane amount of attention online, Since that attention is the currency of the Web, all kinds of people (and probably a few bots) are looking for ways to convert the automatic attention the next iPhone garners into that currency, Some are legitimately interesting and creative efforts, like the best of the iPhone concepts that I often pass on, Others are likely just junk, or people trying a little too hard to connect dots that may or l iphone 6 case may not connect in the real world..