Investors Ho-Hum as Apple Pips Q4 Profit Record

19 January 2007

CUPERTINO, California: Perhaps concerned by Apple Computer's other problems, investors appeared unimpressed by its achievement of record fiscal first quarter profits - net income up 25% year-on-year to $1 billion (€772.3m; £507.1m). Its performance was ahead of Wall Street expectations, thanks to a fifty percent hike in iPod sales.

Investors noted, however, that the number of Macs sold (1.6m) failed to exceed the previous quarter, when back-to-school sales bolstered volume. The bettors responded by driving down Apple stock to $1.04 in after-hours trading to $93.91.

Some analysts believe investors are failing to take the broader picture into account. Opines Piper Jaffray analyst Gene Munster: "Billion-dollar companies don't generally have quarters like this. Apple beat revenues by 17% and earnings by 47%. That's unheard of."

Data sourced from USA Today; additional content by WARC staff