Apple profits slip by 18per cent

First quarter report shows Apple’s profits decline by 18per cent. This is the first time for the company in over a decade.

By Nicole Hamer |

08:20 25 April 2013

Apple has released its first quarterly report and not surprising anybody from the industry, the profit slips by 18per cent. The company’s net profit from January to March is £6.2billion. This is 18per cent less compared to $11.6billion they reported the same time last year.

However, the smartphone and computer maker said that iPhone and iPad sales boosted revenues to $43.6billion. The company sold 37.4million iPhones and 19.5million iPads.

However, Apple’s boss Tim Cook knows that this wasn’t enough. He said: "Though we've achieved a credible scale and financial success, we acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012.”

Meanwhile, analysts and industry experts think that the company needs to innovate and develop more products rather than relying on updates to existing ones.
Lauren Balter, an analyst at Oracle Investment Research, said: "The market is tired of the same old thing at Apple,'' said "Investors are looking for innovation. The reality is that people are looking at other products now and they are looking at other cool features from competitors.''