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Apple Profits Up, But Q4 Misses Expectations

18 Oct, 2011 By: Chris Tribbey

Apple reported fiscal fourth-quarter earnings of $6.62 billion Oct. 18, up from $4.31 billion during the same quarter in 2010, but lower-than-expected iPhone sales sent shares of the company down nearly $28 in after-hours trading.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Apple CEO Tim Cook. “Customer response to iPhone 4S has been fantastic. We have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

Apple sold more than 17 million iPhones during the quarter, a growth of 21% year over year. Apple also sold 11.12 million iPads, a year-over-year growth of 166%. Sales of Mac computers (4.9 million) and iPods (6.62 million) were both up more than 25%. iTunes sales hit $1.68 billion for the quarter.

“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about $37 billion, and we expect diluted earnings per share of about $9.30.”

For the quarter Apple recorded revenue of $28.27 billion, up from $20.34 billion during the same quarter in 2010.

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