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  5. iPhone 5 chatter dents Apple profits

iPhone 5 chatter dents Apple profits

iPhone 5 chatter dents Apple profits

Apple failed to meet profit forecasts in the second quarter, after rumours of the imminent arrival of the iPhone 5 hit sales of its current-gen smartphone.

The purveyor of luxury gadgets shifted a whopping 26 million iPhones during the three-month period to June 30th. That represents a rise of 28 per cent compared with the year-ago period, but was still below sales growth forecasts from Wall Street wonks.

apple wwdc 2012

This, coupled with a 10 per cent slide in iPod sales and static demand for Mac computers, saw profits up by a worse than expected 21 per cent to $35 billion (£22.5 billion).

Commenting on the figures, Apple CFO Peter Oppenheimer conceded that the sheer weight of rumours about the iPhone 5, which is purportedly due in September or October had an impact on sales of the iPhone 4S.

“IPhone sales continue to be impacted by rumour and speculation around new products,” he said.

David Rolfe of Wedgewood Partners pegged Apple’s weaker showing on the relatively high margins on iPhones, which make the handset increasingly integral to the company’s performance.

Rolfe said: "What is key is the mixture between iPhone and iPad, the iPhone has higher margins.

“iPhone sales were lower than expected - meaningfully lower - and that translates into a big hit on the bottom line."

Billed as Steve Jobs’s swansong device, the iPhone 5 is set to feature a larger screen, more processing power and a taller, slimmer form factor.

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