In a case of a company suffering from its own success, Apple’s shares fell following the release of its quarterly report despite the numbers showing that the company had the fourth most-profitable quarter of any company ever. Apple reported revenue of $54.5 billion and net profit of $13.1 billion and labeled the figures “record-breaking.” That wasn’t enough for Wall Street analysts, however, who expected a steeper increase.
The quarter saw 47.8 million iPhones sold, a significant increase from the 37 million sold a year earlier, and 22.9 million iPads, up from 15.4 million in 2011. Both Macintosh computer and iPod sales declined, however, possibly showing that the importance of these industries is declining. Apple’s report also indicated that 61% of the quarter’s revenue came from international sales.
So, revenue is up, profit is up, iPhone and iPad sales are up, and yet shares are down. What happened? It seems analysts’ expectations are to blame as they wanted Apple to continue posting rapid growth instead of the more moderate success it experienced. It looks like it might be time for Wall Street to rein in their predictions and learn to be happy with just a regular “record-breaking” success.