Apple Posts Record Profit Yet Stock Falls
01.18.07 - 04:57pm
Apple posted record profit as it announced it’s earnings yesterday. Apple’s net income rose 78% to $1.14 billion up from 565 million. Revenue was higher jumping 24% to $7.12 billion. 21.1 million iPods were sold as well as 1.61 million Macs.
“We are incredibly pleased to report record quarterly revenue of over seven billion dollars and record earnings of one billion dollars,” said Apple chief executive Steve Jobs.
Even with the good news of superb earnings Apple still saw it’s shares fall more than 6% today. The fall is due in part to analyst’s concerns that iPod sales will diminish as consumers put off purchases while they wait for the iPhone.
Bill Shope of J.P. Morgan, cut his rating on Apple stock to neutral overnight saying “We believe this [seasonal] risk is particularly pronounced given our concerns that some consumers may delay iPod purchases ahead of the iPhone launch.”
Many analysts also expected Macs to sell 1.74 to 1.8 million rather than 1.61. That combined with the stock-option backdating investigation has the majority of analysts putting a hold on Apple’s stock, at least for now.
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