Apple missed revenue expectations; shares slide by 12%

Analysts say Apple is no longer seen as the leader in smartphone market as rivals such as Samsung continue to grow

09:44 25 January 2013

Apple’s 2012 earning updatewas one of the most anticipated in recent years. When it came out, investors and analysts were supposedly shocked.

The company, which used to be the market leader when it comes to smartphones, reported no rise in profits. In fact, the company missed revenue estimates. For this reason, Apple’s share slides by 12per cent in after-hours trading.

Apple estimated last December that they will sell an average of 50million iPhones which generates 55per cent profit margin for the company. They sold 47.8million.

Unusually for a company that used to outperformed analysts expectations, revenue growth of 18per cent year on year was below the $54.9billion forecast.

Last week, Apple’s share fell below $500 after reaching its all-time peak of $705.07 in September.

Tim Cook, Apple’s Chief Executive, said that more than revenue, the company is more concerned about customers’ satisfaction.

"We aren't interested in revenue for revenue's sake. We could put the Apple brand on a lot of things and sell a lot more stuff. The most important thing to us is that our customers love our products, not just buy them but love them."