Apple feels effect of dampened iPad sales in quarter to end-September

Apple reported quarterly earnings that were below most expectations, appearing to suffer from weaker than anticipated iPad sales.

The firm sold 26.9 million iPhones in the quarter, representing 58 per cent unit growth over the year-ago quarter. But it sold just 14 million iPads, a lot less than expected and down 18 per cent from the last quarter – a shortfall the firm blamed on market “rumours.”

“It’s clear that customers delay purchases of tablets due to new product rumours, and these intensified in August and September," CEO Tim Cook told investors on a call.

Apple launched a new fourth-generation iPad earlier this week – just six months after its predecessor – alongside a new, cheaper ‘iPad mini.’

The iPhone-maker posted net profit for the quarter ending September 29 of US$8.2 billion on revenues of US$36 billion. Profit was up from the US$6.6 billion a year ago, but slightly behind the US$8.3 billion predicted by analysts. Sales were up 27 per cent.

The iPhone accounted for almost half of sales, bringing in US$17.1 billion in the period.

CFO Peter Oppenheimer guided for sales of US$52 billion and diluted earnings per share of about US$11.75 for Apple’s current fiscal Q1 2013, the key Christmas quarter.

“We’re entering this holiday season with the best iPhone, iPad, Mac and iPod products ever, and we remain very confident in our new product pipeline,” added Cook.