Ina Fried

Recent Posts by Ina Fried

Apple Sees Another Earnings and Sales Drop Following Quarter’s Miss

Although Apple’s sales and earnings fell short of estimates on Tuesday, the bigger news could be the company’s weak forecast for the current quarter.

The company predicted a further drop in sales and earnings in the current quarter, with revenue of about $34 billion and per share earnings of $7.65, both figures way below what Wall Street had been anticipating.

Shares were down steeply in after-hours trading, changing hands recently at $569.55, down more than 5 percent from where they ended regular trading.

Apple is known for its conservative guidance, but the numbers are low even by Apple standards. And while it is not uncommon for Apple to guide below what Wall Street was anticipating, such guidance typically follows a blowout quarter, not a miss like the one Apple served up on Tuesday.

The company reported revenue of $35 billion and per-share earnings of $9.32, both well shy of estimates.

On the bright side, the company continued its $2.65 per share dividend and also announced that the next version of Mac OS X, known as Mountain Lion, will go on sale on Wednesday.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work