iPhone 5s Release Date 2013 Sales: Apple Predicts Slower Holiday Season, Fails To Meet Analyst Expectations
Apple is failing to meet the expectations of analysts who predicted a better financial outlook for the upcoming holiday season, prompting concerns from people who hoped for more.
The tech giant did, however, post solid numbers from the most recent quarter as we saw the introduction of two new iPhones, new iPads and a pair of operating systems. But as the company looked to make big gains by rolling out all kinds of new products and operating systems, a reality check indicated otherwise.
Apple is predicting a profit margin in the range of 36.5 to 37.5 percent for the upcoming period through the holidays, but the analysts were expecting -- at the very least -- a gross profit margin of 37.9 percent in the fiscal first quarter, according to the USA Today.
"People are a little concerned about the gross margin outlook for the December quarter," said Brian Marshall, who is an analyst at ISI Group.
After the news broke about Apple slipping in expectations and results, the company's shares dropped 0.2 percent to $528.30 after trading.
One of the biggest disappointments as of late has been the company's iPhone 5c. Apple took a major risk by releasing, for the first time, two iPhones simultaneously. Instead of focusing on one and making it the best it could be, the company made one solid iPhone and one that seemed like a slipshod, repackaged iPhone 5 with new colors and a new front-facing camera. Besides that and the drop in price, there were very few positives about the budget-friendly option. Apple has even cut the production of the 5c as it looks to focus on the 5s, which has raised the question of whether the company will ever release two phones simultaneously ever again.
Furthermore, the company's iPhone and iPad have faced increasingly competitive markets and rivals have cut into the company's profits.