Apple Reports Big Quarter, But Drops Guidance
Apple Inc. on Tuesday released financial figures for the first quarter of fiscal 2008 in which the company posted a profit of $1.58 billion, up from an even $1 billion for the same period the year before, based on record sales of Mac computers, iPods and iPhones.
But despite the strong figures, based on $9.6 billion in revenue, Apple dropped its revenue forecast for the second quarter from $7 billion to $6.8 billion. That caused Apple’s stock to drop 11 percent in after-hours training, as the earnings were announced Tuesday afternoon, after the markets closed.
The stock dropped, Apple’s CFO told the New York Times, because of a drop in software sales and a slowdown in business after the holiday season. Also affecting the company are the faltering U.S. economy, and the recent introduction at Macworld of a lineup of products that was not received as rapturously as other Apple products of recent years.