Apple hits record first quarter sales but share prices drop

Apple: iPad Air TV campaign
Apple: iPad Air TV campaign

Apple has reported a series of records in its first quarter results, including a quarterly revenue of $57.6bn and quarterly net profit of $13.1bn, as well as record sales of iPhones and iPads, but its shares dropped overnight.

The tech giant said it sold an "all-time quarterly record" of 51 million iPhones for the three months to 28 December 2013, compared to the 47.8 million sold in the same period last year.

In addition, the company sold 26 million iPads, also an all-time quarterly record, compared to 22.9 million in the first quarter of last year, while the sales of Macs are up to 4.8 million.

Reports show Apple's share price dropped by nearly 9% however, as after hours trading showed the effects of Apple having lowered its sales outlook for 2014.

The company said it expects revenues of between $42bn and $44bn this year, which is slightly less than had been previously forecast.

Chief executive Tim Cook said the company was "really happy" with the record sales. He said: "We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better."

But while Apple enjoys its vast yet slowed growth, it is the ability to create a new category that will create the company's real challenge, according to Neil Duffy, the UK managing director of brand consultancy Interbrand.

Duffy said: "Apple is currently enjoying the benefit of the doubt among its customers, continuing to enjoy substantial but slowing growth through iterations of its hero iPad and iPhone range.

"The major post Jobs challenge will arise when it seeks to use the power of its brand in an entirely new offer whether that is Apple TV, a smart watch or other personal technology.

"We will then see if the Apple magic of anticipating those things that consumers didn’t know that they needed and making them compelling still holds."

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug
Thetrainline.com backs 'rubbish' mobile app with TV ad
Powerade launches global World Cup campaign
Burberry's flagship Shanghai store facade responds to weather changes
Subway considers taking fast food to fast lane with F1 sponsorship
Ikea splurges 'grey' Belgium with colour
Grim outlook for Tesco boss Philip Clarke ahead of expected profits fall
Thomson to create first crowd-sourced wedding decided by Facebook fans
Currency wars meets origami in Alpari FX trading ad campaign
Amazon rumoured to launch 3D smartphone in September
Facebook to allow European users to store and transfer money on site, claims report
Unilever pilots multi-brand advertising with YouTube beauty channel
Lego, Coca-Cola, Net-a-Porter, Bitcoin and AOL: the digitally creative brands
Dove tries to tell women their beauty is innate through placebo patches
Wonga faces social media storm after forcing Twitter to remove satirical material