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Apple CEO Tim Cook said company remains focused on building “innovative products” but admitted that the collapse of the stock price has been “very frustrating to all of us.” (Bloomberg News) |
Tech titan Apple suffered its first fall in profit in the second quarter in nearly a decade despite an increase in revenue.
According to Apple’s financial report, the company’s net profit dropped to $9.5 billion in the second quarter of 2013 ending on March 30, an 18 percent decline from $11.6 billion in the same quarter last year. The company’s revenue recorded $43.6 billion, an 11 percent rise from $39.19 billion in the quarter in 2012.
The sales for iPhone grew from 35.1 million units to 37.4 million in the same quarter as well as for the iPad at 19.5 million units compared to 11.8 million units in the previous year. Apple’s desktop computer Mac series showed no growth, totaling just under 4 million units.
Consumers’ preference for less expensive models such as old iPhones or the iPad mini over the company’s latest product iPhone 5 might have caused a decline in its income despite the rise in revenue. Higher component prices may have also eaten into its profit.
Following its announcement, the Apple board agreed to buy back $100 billion worth of stocks by 2015, along with an increase in stock dividend by 15 percent to $3.05 per common share in order to regain shareholders’ confidence.
Apple shares rose 5.5 percent to $428.30 after the share buyback plans were announced.
Jin Eun-soo, Intern reporter
(
janna924@heraldcorp.com)
