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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The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald