Why buy iPhone 4 when the next model is around the corner?
Rumours that the debut of Apple‘s next iPhone is imminent wiped 5 per cent off the company’s shares in after hours trading last night [July 24th 2012]. Apple failed to meet Wall Street forecasts with its third quarter earnings and revenues with the blame attributed to fans holding back on buying the iPhone 4 in the hope that its successor, the iPhone 5, will be released before Christmas. Analysts had expected revenues for the quarter to come in around the $37.2 billion mark but instead they totalled $35 billion, while earnings were similarly down – $9.32 per share compared to expectations of about $10.32.
“iPhone sales continue to be impacted by rumour and speculation around new products,” admitted Apple’s CFO, Peter Oppenheimer, adding the company had also witnessed flat growth in the Eurozone, especially France, Greece and Italy.
On the positive side sales in the US and China remained robust, with the latter market doubling in the past year.
After the update Apple’s shares dipped to below the $600 mark in after-hours trading on Wall Street .
Failing to meet analyst’s estimates now also ups the stakes for Apple as it faces a growing competitive and legal challenge from Samsung on the smartphone front.