Apple misses expectations, still delivers 166 percent increase in sales in Q3 2011

It was a mix of good news and bad news for Apple today when it announced its latest quarterly results.

The company revealed today that for the three months that ended on September 30 it sold 17.07 million iPhones, up 27 percent from the same period a year ago. It also announced it sold 11.12 million iPads, a whopping 166 percent increase from the same period a year ago.

Mac sales for Apple came in at 4.89 million units, up 26 percent from the same period a year ago. As expected, iPod sales are on the decline but Apple still sold 6.62 million units of the media player for the quarter.

Apple recorded net revenues of $28.27 billion, up from $20.34 billion for the same period a year ago. Apple recorded a net profit of $6.62 billion, up from $4.31 billion for the same period a year ago.

Despite all the impressive numbers, the results were lower than what was expected by analysts and as a result Apple's stock price was down several percentage points in after hours trading. It's the first time that Apple has missed financial expectations since 2004. Analysts also expected that Apple would sell 20 million iPhones for the quarter.

Many investors may be wondering whether or not it might be finally time to sell Apple stock after a huge rise up in the past few years thanks to the sales success of the iPod, iPhone and iPad. With its founder and former CEO Steve Jobs's death earlier this month, some stock holders might be thinking that Apple won't be able to innovate as well without Jobs at the helm.

In related news, The Wall Street Journal reports that some Apple retail stores will close briefly on Wednesday afternoon as part of Apple's employee event to remember Steve Jobs.

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24 Comments

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Well if everyone was anticipating the next iPhone, Q3 sales WOULD be low, wouldn't they be? Who wants to buy an iPhone just before the new one comes out?

dang it tim cook! its all your fault! (jk but thats who everybody is going to blame all future apples failures on)

The stock will probably drop 6-8% tomorrow and then will rise 7-10% the day after.
As long as Apple's products sell, the stock will keep going up and up. No worries.

sssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss

So let me get this straight. Even though Apple's quarter sales for pretty much every product they sell saw a massive increase, even though their revenues rose by 39%, even though their profits rose by 54% ... the analysts were predicting more (incorrectly, because unlike Apple they're not good at what they do) and then Apple's stock goes down as a result? Wacky!

That's because iPhone 4S is 1) not the iPhone 5 2) not a super massive improvement over the iPhone 4, simply a "bump up", including Siri. Alas.

Ummmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm.... This is for Q3 sales. Q4 sales that include iPhone 4S sales would be reported after Q4.

What's interesting is Q3 iPhone sales usually include the summer iPhone launch, which this year it doesn't yet it still had a 27% increase. Q4 results are going to smash the previous Q4's sales.

iPad sales are over double entire Mac sales, is also interesting.

DomZ said,
What's interesting is Q3 iPhone sales usually include the summer iPhone launch, which this year it doesn't yet it still had a 27% increase. Q4 results are going to smash the previous Q4's sales.

iPad sales are over double entire Mac sales, is also interesting.

Yep people seem to have forgotten that the newer iPhone launched a lot later this time round and thus misses out in these figures. Q4 results will be stellar

DomZ said,
What's interesting is Q3 iPhone sales usually include the summer iPhone launch, which this year it doesn't yet it still had a 27% increase.
Probably because of the Verizon deal.

Elliott said,
I'm holding my stock. The stock market is completely schizoid.
Welcome to the stock market. I see you're new here.

Elliott said,
I'm holding my stock. The stock market is completely schizoid.

I feel sorry for anyone who bought AAPL @422 and GOOG @622. LOL

Joey S said,
I think Apple has reached its peak. It's all down hill from now on.

I'd love to go down hill by selling 4 million phones in a weekend

Joey S said,
I think Apple has reached its peak. It's all down hill from now on.

People were waiting for the next iPhone, part of the lower than expected numbers.

Lower than analysts hoped, yet massive percent increases over the past year. Crazy numbers and crazy people if anyone is disappointed by them

Byron_Hinson said,
Lower than analysts hoped, yet massive percent increases over the past year. Crazy numbers and crazy people if anyone is disappointed by them
I wish I could be an analyst. It must be wonderful getting paid to make crazy projections.

Byron_Hinson said,
Lower than analysts hoped, yet massive percent increases over the past year. Crazy numbers and crazy people if anyone is disappointed by them

For years Microsoft had huge percentage increases, but when your profits go up, it becomes harder and harder to reach those same percentages. Microsoft stopped hitting 30%, 40%, or 50% growth, and went to 10-15% and people were laughing, claiming MS was dead. And when MS did not hit estimates a few years ago because of the economy, they started digging the grave.

Now we see Apple starting to not hit their marks, not getting the same percentage growth, and suddenly it is the people who are crazy.

http://www.youtube.com/watch?v=8rwsuXHA7RA

thealexweb said,
"Shatters all expectations" Yet they missed the analysts expectations xD

Exactly. There are lots of positives to focus on but "shatters all expectations" is just flat out wrong.

nowimnothing said,

Exactly. There are lots of positives to focus on but "shatters all expectations" is just flat out wrong.

Yeah, title needs to be completely re-written. They expected 22m iPhones to be sold, they 'only' sold 17m.