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Daniel Nations

Apple Records Record Sales, Stock Plunges

By January 24, 2013

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In a "the sky is falling" moment, Apple announced record revenue, earnings and sales of its two most popular products, and investors reacted by plunging the stock under $500 a share, eventually ending in a 10% drop in price. The problem? Apple had revenue of $54.5 billion after forecasting revenue of $54.7 billion, with some analysts suggesting it might be closer to $55 billion. Nevermind that $54.5 billion shatters the old record of $46.3 billion, which was set last year during the same quarter. The 17.7% rise in total revenue was also accomplished with one less week in the quarter, making the number even more impressive.

It's a good example of how investor confidence can trump actual growth. Apple's stock first took a hit after the release of iOS 6.0, which replaced Google Maps with the the much-maligned Apple Maps. Rumors kept the stock on a downward spiral, and missing expectations spurred a sell off. But the real culprit may very well be the death of Steve Jobs in 2011, with investors worried that Jobs' passing equates to an end of innovation within Apple.

High Expectations Taking a Bite Out of Apple

Tim Cook has hinted that Apple has several new products in development, with many believing Apple is gearing up to release some type of television device, either a device to replace cable boxes or a full-blown television set. This persistent rumor may be getting push back from Hollywood, which may be hesitant to jump into business with Apple.

Apple also revealed they sold 47.8 million iPhones and 22.9 million iPads, which are quarterly records for those devices. In fact, the only truly bad news during the call was the average sales price of an iPad, which dropped from $536 to $466, This wasn't unexpected considering the release of the cheaper iPad Mini.

How to Connect Your iPad to Your TV

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