The results that Apple posted yesterday (July 25th), which showed lower than expected profits for the three months to the end of June, wasn't necessarily a surprise.
It made a net profit of $8.8 billion (£5.7 billion) in the three-month period, which is an increase of 21 per cent year on year.
Co-manager of Capital Advisors Growth Fund Channing Smith told Reuters the results were “clearly a disappointment”.
Despite incredibly strong growth in sales of iPads in the period, BGC Partners analyst Colin Gillis said the device isn't strong enough to boost Apple's numbers enough.
The expert anticipates that it will be the upcoming iPhone 5 that will provide a strong increase in sales. However, he said it will be difficult for the mobile phone to exceed expectations because it is already the “most hyped device”.
Mr Smith added: “We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S.”
Posted by Peter Robinson