Apple stock drops more than 10 percent as iPhone sales miss analysts' expectations
Apple posted a $13.1 billion profit on the $54.5 billion in revenue in its first quarter, but iPhone sales missed analysts' expectations, sending its stock price down more than 10 percent in extended trading.
The iPhone-maker posted $13.81 earnings per share, besting analysts' estimates of $13.53, as iPhone sales hit a record 47.8 million, compared to the 37.04 million units it sold in this quarter last year. Still, that was below Wall Street's predicted 50 million sales.
As expected, sales for the iPad reached new heights. The company sold 22.9 million of the tablets, compared to 15.43 million last year.
Mac computer sales fell by 1.1 million to 4.1 million and iPod sales continued to slide down to 12.7 million from 15.4 million a year ago.
"We're thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter," Tim Cook, Apple's CEO, said in a statement. "We're very confident in our product pipeline as we continue to focus on innovation and making the best products in the world."
During the earnings call, Cook quashed rumors that Apple would create a larger-sized iPhone to compete with Samsung's Galaxy S.
"We put a lot of thinking into screen sizes," he said of the iPhone 5, which has a 4-inch display, "and we think we picked the right one."
Responding to an analyst's question about the quality of Apple Maps, the glitch-prone Google Maps competitor that embarrassed the company at the launch of iOS 6, Cook said Apple had improved the satellite imagery and locally available information.
"We've made a number of improvements to maps," he said. "We're going to keep working on this until it lives up to our incredibly high standards."