iPhone Sales Fall Short Of Expectations

Apple sold 17.07 million iPhones in the fiscal 2011 fourth quarter which ended September 24, 2011, representing 21 percent unit growth over the year-ago quarter. During the quarter, the company sold 11.12 million iPads, a 166 percent unit increase since last year. Despite the increases, the company didn’t sell as many iPhones as analysts had speculated.

The New York Times has more: “In a rare disappointment, the company missed Wall Street forecasts for its iPhone business… investors fixated on a 16 percent decline in iPhone sales from the third quarter. Apple shares fell 7 percent after the release of the results at the close of normal trading hours. Apple executives blamed the shortfall in iPhone sales on unusually heated rumors that the company would release a new phone in the fall, leading consumers to delay their purchases so they could get the latest version.”

Still, the company reported $28.27 billion in revenue for the quarter, up from $20.34 billion in Q4 2010, and a net profit of $6.62 billion for the quarter, up from $4.31 billion last year. International sales accounted for 63 percent of the quarter’s revenue.

Apple CEO Tim Cook expressed satisfaction with the numbers in his statement: “We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion. Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”