After posting new all-time record revenue, Apple shares collapse in after-hours trading

Apple today announced financial results for its 13-week fiscal 2013 first quarter ended December 29, 2012. The company posted record quarterly revenue of $54.5 billion and record quarterly net profit of $13.1 billion, or $13.81 per diluted share. These results compare to revenue of $46.3 billion and net profit of $13.1 billion, or $13.87 per diluted share, in the 14-week year-ago quarter.

Average weekly revenue was $4.2 billion in the quarter compared to $3.3 billion in the year-ago quarter.

“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” said Tim Cook, Apple’s CEO, in the press release. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

Apple’s 13.1 billion Q113 profit, in a 13-week period, is the most profitable quarter for any tech company in history, eclipsing Apple’s own $13.06 billion record set in the 14-week year-ago quarter.

In after-hours trading, at 6:14pm EST, shares of Apple Inc. (AAPL) were down $56.21 from the close, or -10.94%, to $457.79.

Related articles:
Jim Cramer: ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore’ – January 23, 2013
MacDailyNews presents live notes from Apple’s Q113 Conference Call – January 23, 2013
Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013

50 Comments

    1. Yes, but not now.
      Manipulating the stock, was when it went to the sky $705 only by rumors about some magic iphone 5,
      Wall Street made this pyramid.
      Well, at the end it was not magic but just good smartphone. And the things are getting now to normal. And guess who sold at $700 to $500 telling you not to sell?

  1. WTH????? The Company Makes money, has Demand for Products, and Is constantly Selling out of them, What the hell is wrong with investors who don’t want their stock?? I totally understand if they make crappy stuff, their OS is no good, there are loads of complaints about what they make, but is there any of that? no. So What is the Gist of the main Problem? Why is the Stock still diving? And why don’t Apple Say anything about it? They Should start changing the way they communicate with people or else we’ll lose confidence in their brand and sink it to $200 a share.

  2. I am confused, Apple sets a record for sales and the stock drops while google does not come in sight of Apple’s profits and it is doing fine. This makes no sense to me. Profits like that I would be buying shares left and right.

    1. What Apple has going on is already priced into the stock. When buying a stock you are looking forward and Apple looks like the can’t shoot straight gang.

      Google is getting better at software- Apple’s strong hand- faster than Apple is getting at web services- Google’s strong hand.

      Steve Jobs may have been good at many things, but picking CEOs at Apple has produced John Sculley and Tim Cook. I’m not convinced he did any better with Cook, a guy who knows how to make the trains run on time.

      1. 40% of the stock price is covered by liquid assets. You can’t tell me that their hard assets and the ability to reap 10 billion per quarter profit which continues to grow YoY only adds up to a $280 billion dollar company. That puts it on par with GOOG and MSFT. It’s undervalued.

      2. Apple’s stock price is suffering mainly based upon past perception, not an objective reality.

        The company has no debt, iPhone marketshare is increasing, inroads are being made in China, and there’s no sign that they have to change course.

        And while Tim Cook may not be Steve Jobs–then again, who is?–there’s nothing he has done to support your contention that he isn’t effective as CEO (and don’t lay the Maps debacle in his lap because he took care of that quickly and as efficiently as anyone, even owning up to the mistake).

        And I am not sure I agree that Google is getting all that good at sofware, compared to Apple, at least; nor does Apple have to be as good as web services as Google.

      3. … except the trains ARE NOT running on time. Apple has fumbled so many product releases lately, it’s downright embarrassing. Buggy late software, late limited availability hardware. Cook’s “outsource to the max” philosophy has hit the skids as major supply constraints occur. Apple used to be able to keep product developments a secret, but in the past 5 years IP has been leaked at an alarming rate. Time to spend that cash pile on in-house vertical integration, Tim.

        We can only hope that the pendulum swings the other way soon.

  3. C’mon people it’s not difficult to understand. Much higher revenue but profits remain even? Margin margins margins. THIS is the real reason for less expensive casings for the new iPhones. Forget about for developing nations thing, it’s about propping up margins. Here, and in other fully developed markets.

    1. So, exactly how much does Amazon make in margins to keep the share price rising the way it does? Pretty soon Amazon will pass Apple in share price or they’ll both meet at $350 a share.

      1. Amazon and Google do not have any one breathing down their neck. They do not need to constantly be bringing to products to market. They have markets sewed up. Apple has to hustle and stay ahead of everyone. Even everyone else that takes cuts and copies shell out cheap knock-offs into the market. There is a Big difference between Amazon and Apple. Don’t kid yourself.

    1. I can’t agree more. While I hate to see the fall in value, I do like that it becomes more affordable for the average person, and have been encouraging people to buy while the price is as low as it is.

      Because I get a feeling that what amounts to almost a sale on Apple stock isn’t going to last as long as a lot of people would like to think.

  4. Apple don’t care about the stock price. It doesn’t bother them whether it is up or down. They have cash and control their own destiny.
    For the market they want apple to grow exponentially. It is not possible and so the stock price will tank.
    Wish I had cash to buy in. Excellent opportunity.

  5. Cramer et al say stay away from Apple? What, are they stupid? This is a great time to buy Apple stock. I’m sure they are, and then when they have plenty, they’ll start crowing about how Apple stock is a great investment. Whatever.

  6. Here is the answer :
    Apple Stock for 2 years was sky overblown, only by rumors about the magic iphone 5. It was $700 . Wall Street made this pyramid.
    Well, at the end it was not magic but just good smartphone. And the things are getting now to normal. And guess who sold at $700 to $500 telling you not to sell?

  7. I think that the traders are disappointed with:
    a) The fall in the % margin from 44% to 36%, 8 percentage points, or a 22% decline in their %margin which means that in order to just keep the same level of profits Apple will have to sell a lot more stuff..this is a big concern
    b) The fall of 21% in sales of Macs…but then again they are becoming “trucks”..shouldn’t matter
    c) If the iPad mini is selling well, the margin is lower than the normal iPad again it hurts the overall margin for Apple
    Yes I know that this is a record level of sales overall, but the market is growing faster/higher (the mobile market not the pc/mac)
    d) Apple didn’t give a profit guidance, which is UNUSUAL for them…again…the story seems to be NOT total margin or sales, but the % margin..

    1. But this was already in the guidance Apple provided and priced into the low, low P/E, after subtracting cash is niw less than 1/2 of S&P average. The pricing of AAPL now essentially assumes negative growth, which is ridiculous given the popularity of their devices all over the world. Articles that try to justify AAPL’s absurdly low price as anything other than manipulation strike me as completely disingenuous.

  8. $462 at posting.

    Only $62 more to go for a nice $400 stock. I’m so glad I wasn’t stupid or Fanboi enough to pay $705.07/share. Stopped buying somewhere in the $320-340 range.

    Cook & Company seem to have conceded the market to Google and Android unless they are just lying through their teeth over a less expensive phone. Looks like a company coasting on inertia from the outside.

  9. Wall Street short-term focus strikes again.

    Traders have always been leery of a company that invents and sells premium products. The slavish worship of Wal-Mart quality occurs not only by the likes of those on thepeopleofwalmart.com, but also in the plush Manhattan offices of self-appointed economic gods. As such, these genuises have accelerated their investments not in the innovators at Apple, but instead into copycat volume leaders like Samsung, more diversified suppliers like LG, or directly into Chinese no-name companies that have already been christened as “the future”. They are economic traitors to the USA.

    That being said, Apple’s recent track record has scared off a lot of more objective, data-driven investors too. These long-term investors will come back only if Apple continues to release innovative products instead of their recent track record of lackluster software “updates”, self-cannibalizing derivative products, and supply-constrained products that are apparently single-sourced to unreliable overseas parties. Apple has a lot of work to do, and today’s announcement only showed that Apple relies increasingly on the iPhone for its growth while it stumbles in far too many of its other businesses and offers no hints whatsoever about future market entries.

    Macrumors Buyer Guide, once again, shows as much red as green.

  10. Apple is the same company it was at 700 dollars a share as it is now, although much lower. What has changed is not Apple but Wall Street. So what’s wrong with Wall Street? Perhaps it’s much easier to make big money forcing Apple down on FUD than find reasons to make it go up.

  11. Very interesting. Apple hits the big time, and I mean the really big time.
    See how it attracts all the greed and envy possessed, controlling monkey minds joining in a giant chaotic chattering chorus of self important all knowing judgements and commands for what Apple is, and must do, or what it has not done.
    Any doubts that humans are just a bunch of baboons with less hair and bigger brains?

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