Originally Posted by sirex
after reading the report, it's the guildance that caused the after market sell off to $460
This qtr the revenue is $54 billion but the gross margin at 38.6% is lower than a year ago of 44.7 % same qtr..and the guildance between $41 to $43 (lower revenue than this qtr) triggers the sell off
Apple is providing the following guidance for its fiscal 2013 second quarter:
• revenue between $41 billion and $43 billion
• gross margin between 37.5 percent and 38.5 percent
Shares of the Cupertino, Calif., company fell 10% in after-hours trading to $462.46 as the increased product sales failed to satisfy Wall Street's expectations. The results built on growing concerns that Apple may be losing its edge with consumers and have a tough time topping its past success.
"It is a decent, but not a great quarter for them," said Patrick Moorhead, analyst at Moor Insights and Strategy. He noted that the gross margins in the quarter, falling to 38.6%, may be a sign that the company's pricing power is slipping.
"It portends to a perceptual shift that Apple is no longer ahead," he said.