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Apple sees first profit slump in 10 years

Apple's profits have fallen by $2bn in the last year. It's the first dip in profits seen by the t...
Newstalk
Newstalk

05.56 24 Apr 2013


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Apple sees first profit slump...

Apple sees first profit slump in 10 years

Newstalk
Newstalk

05.56 24 Apr 2013


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Apple's profits have fallen by $2bn in the last year.

It's the first dip in profits seen by the technology giant in a almost a decade.

Compared to the same quarter last year, the company is experiencing its slowest growth in the US and China, while the Asia Pacific has seen the a positive performance for Apple products.

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Here's a breakdown of the numbers: 

Despite the drop Apple still made $9.5bn for the first three months of this year. That's compared to the $11.6bn it made in the same quarter last year.

The reason for the lowered profits is the plummeting of the gross margin to 37.5%, down from 47.4% in the same quarter last year.

37.4 million iPhones were sold in the quarter, which is more than the 35.1 million sold a year ago. Apple also sold 19.5 million iPads, that's up from 11.8 million in last years quarter.

The dip in profits is largely because sales of Macs are down to under 4 million compared to 4 million last year while iPods are continuing their steady decline - 5.6 million were sold in this quarter that's down from 7.6 million a year ago.

The Guardian's technology editor Charles Arthur says Apple is having a tough time pleasing people.


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