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Apple blames lackluster sales on iPhone rumors

updated 07:12 pm EDT, Tue July 24, 2012

Customers waiting for next device

Apple executives have admitted that persistent rumors surrounding its upcoming devices, such as the sixth-generation iPhone, have had a negative impact on sales. After several years of stellar performance and beating Wall Street forecasts, the company failed to meet analyst expectations for its latest fiscal quarter. When pressed by analysts, chief financial officer Peter Oppenheimer cited the strong US dollar, economic conditions and ongoing rumors as its biggest challenges.

"We're reading the same rumors and speculation that you are about a new iPhone," Oppenheimer noted during a financial conference call.

The company achieved 100 percent year-over-year iPhone sales growth in select markets such as China, however sales failed to maintain momentum in Europe and other markets. Chief executive Tim Cook noted particularly slow Mac sales ahead of the company's WWDC conference, where the company was widely expected to unveil the Retina MacBook Pro, though the new device was met with stronger-than-expected demand in the last few weeks of the quarter.

The executives declined to provide any specific numbers regarding the estimated impact from product speculation and rumors, while maintaining that the company is happy with its quarterly performance. The company beat its own guidance for the quarter, despite falling short of analyst expectations.

"I'm glad that people want the next thing; I'm super happy about it," Cook added. "I'm not going to put any energy into getting people to stop speculating."

AT&T made a similar admission as part of its quarterly financials, which received a boost from customers waiting for the next iPhone rather than upgrading early. Apple's iconic handset is believed to fetch significant subsidies compared to many other smartphones, resulting in higher margins when subscribers delay purchases past upgrade eligibility dates.

The sixth-generation iPhone has been the focus of a myriad of rumors, some of which point to a new dock connector, LTE support and a metal housing. October is viewed as a likely launch time-frame, leaving a year between the iPhone 4S release in October of last year.



By Electronista Staff
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Comments

  1. Wiskedjak

    Posting Junkie

    Joined: 06-04-02

    Apple's biggest sales weakness is its incredibly predictable product cycles: new iPhones in late summer/early fall, new iPods in the fall, iPads in spring, laptops around wwdc.

  1. wrenchy

    Forum Regular

    Joined: 11-03-09

    Oh yes, it's all those "rumours" that have stunted our sales. Yup, that's it.

    Of course it has NOTHING to do with the 10+million Galaxy S III's that are flying off the shelves into happy consumer hands. It should be up to 11 million units by the time I finish writing this...

    Hey Apple, it's called "You're losing sales because of The Little Green Robot."

    It is what it is. Drrroid!

  1. blahblahbber

    Banned

    Joined: 02-01-05

    Thats true.... apples going down.... samsung is making what people want... Apple is forcing technology onto people. Apple has always been stupid... and the sheep will follow, bahhhh bahhhhh

  1. burger

    Forum Regular

    Joined: 09-13-00

    Fail trolls are fail.

    Any analyst that turns reporting a largely profitable quarter into a negative is simply working to destabilize the stock value to make a buck. Politics and wall street at their finest.

  1. Grendelmon

    Mac Enthusiast

    Joined: 12-26-07

    Sorry, Apple... but your product sales can sometimes be the victim of your own marketing hype. You love the rumors but you say you don't. You love the consumer product anticipation but you pretend that you don't. You can't have it both ways, all the time.

    Now, with that said... when does the 7" iPad come out?!

  1. Athens

    Addicted to MacNN

    Joined: 01-15-03

    Apple meet its expectations, just didn't meet the speculators expectations. This is a non story. Just goes to show Apples own estimates are pretty accurate.

  1. apostle

    Junior Member

    Joined: 04-16-08

    Grendelmon said...'Now, with that said... when does the 7" iPad come out?!'

    The fourth generation iPad could arrive as early as September.

    http://appadvice.com/appnn/2012/07/the-fourth-generation-ipad-could-arrive-as-early-as-september

    ;0)

  1. testudo

    Forum Regular

    Joined: 08-06-01

    Originally Posted by AthensView Post

    Apple meet its expectations, just didn't meet the speculators expectations. This is a non story. Just goes to show Apples own estimates are pretty accurate.



    Um, since Apple was always crushing their expectations, why would anyone pay any attention to what Apple says?

  1. goofytoo

    Fresh-Faced Recruit

    Joined: 07-30-12

    I'm not all that much into statistics and market prediction by so-called economists and their cliques..

    I'm more into just the normal stuff that might turn people off Apple..

    It's those damn patent wars..

    Just put out your products and understand that companies are not in charge of consumers. I buy what I want, based on reading as many tech reviews as possible. And any company that thinks trying to get rid of their competition through cheap-ass means just plain look bad to me. Let the people decide what's right for their needs and if the products speak for themselves, then all the money the companies make off their products would be their just market share.

    2 cents, right?

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Originally Posted by testudoView Post

    [QUOTE=Athens;4179746]Apple meet its expectations, just didn't meet the speculators expectations. This is a non story. Just goes to show Apples own estimates are pretty accurate.



    Um, since Apple was always crushing their expectations, why would anyone pay any attention to what Apple says?[/quote]

    Because they've been pretty accurate?

    Are you listening?

    Is that brain on?

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