Lower growth warning spooks Wall Street
Apple shares closed more than 10 per cent down in New York last night [23rd January 2013] after its results for the three months up to Xmas disappointed investors. Ironically, the Cupertino-based manufacturer had posted record profits for its crucial Q1 period, covering October, November and December, but it also warned of lower revenue growth in coming months. A record 47.8 million iPhones and 22.9 million iPads were sold, though this would have been higher if Apple had managed to keep up with demand.
Sales for the period came in at $54.5 billion (£34.4 billion), an 18 per cent increase on the previous year, thanks to booming sales of the iPhone 5 and iPad mini.
But the low price of the iPad mini and higher production costs associated with the iPhone 5 reduced profit margins.
Only last week the company’s stock took another battering when it was revealed that it had cut orders for iPhone parts, suggesting demand was weakening.
Apple shares closed at $514, substantially lower than at their earlier height of $702 in October last year .