Neil HughesApple Chief Financial Officer Peter Oppenheimer said the poor economy in Europe had a particularly large impact on Apple's sales during the June quarter. In addition, resource-based economies in countries like Australia, Brazil and Canada also struggled during the three-month span.
Another issue is rumors of Apple's anticipated next-generation products, in particular regarding a sixth-generation iPhone.
"We're reading the same rumors and speculation that you are about a new iPhone," Oppenheimer said.
Apple Chief Executive Tim Cook said he has the sense that there is "incredible anticipation" for Apple's next generation of products. While he said he can't exactly quantify the effect rumors have had on sales, he said it's likely a "reasonable amount."
New product rumors also played a part in relatively flat Mac sales during the June quarter. The timing and availability of Intel's latest Ivy Bridge processors forced Apple to launch its latest MacBook Pro and MacBook Air models with just three weeks left in the third quarter, limiting sales in the three-month span.
Cook revealed that weekly Mac sales were actually down year over year before Apple's annual Worldwide Developers Conference, when the new MacBooks were announced. Sales of those new portables were so strong in the last three weeks of the quarter that it offset any reductions.
Apple also wasn't able to launch its third-generation iPad with Retina display in China until this month, as an ongoing trademark dispute with Proview stood in the way. Apple also had to wait for its new MacBooks to gain regulatory approval from China's government before they could go on sale.
Finally, Oppenheimer also cited a strengthening U.S. dollar as a factor that had a negative impact on Apple in the quarter. He said the dollar has improved against most currencies around the world, which has resulted in reduced revenue.
Though analysts may view Apple's third fiscal quarter as a disappointment based on market expectations, Apple executives insisted that they are pleased with the results they saw.
"We're very happy with how the business performing, and we're excited about the new product pipeline," Oppenheimer said.
And Cook said while rumors of new products may negatively impact sales of currently available devices, the ability of people to speculate is one of the hallmarks of free speech in the U.S., so he has no intention of attempting to stop those rumors.
"I'm glad that people want the next thing," he said. "I'm super happy about that... I'm not going to put any energy into getting people to stop speculating. I don't think that's going to amount to anything."
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102 Comments
I suspected the crash of many European economies had something to do with the light sales. No idea why analyst would think Apple would be immune to the European situation when it's their 2nd largest market.
This is a good article on the highlights, including the last minute comments from the conference call. It's interesting that Apple exceeded it's guidance and yet people aren't happy. Apple had record profits for this quarter and still people aren't happy. With the late introduction of the IvyBridge CPU, the new Macs were only available at the end of the quarter and barely made it a record quarter in Mac sales.
All this tells me is that the next quarters are going to be much better with all the product lines.
This is a good article on the highlights, including the last minute comments from the conference call. It's interesting that Apple exceeded it's guidance and yet people aren't happy.
People are accustomed to Apple blowing everyone away 7 times over.
It's only 4 times over this time.
That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it? It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.
Every company (including Scamsung) would LOVE to have that kind of "disappointing" quarter. All this means to me is yet another AAPL buying opportunity.
If there's only one thing I agree with is that everyone (including me) is waiting for the new stuff to come out. Wait for this quarter to finish. With the retina MacBooks, refreshed iMacs, and of course the new iPhone is going to please...
Of course, the analysts are going to project 1.21 gazillion devices... like they would know.
People are accustomed to Apple blowing everyone away 7 times over.
It's only 4 times over this time.
That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it? It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.
Apple usually guide low so they can easily beat but when it is a miss means something went wrong