Apple’s quarterly earnings for September were revealed on Tuesday and the figures were met with some disappointment. For the first time since 2002 the estimated earnings from the Wall Street consensus were not lived up to raising some cause for concern. However analysts insist this is just a ‘hiccup’ and the sales of the iPhone 4S in the next quarter will redeem it.
As a result of the ‘hiccup’ and predictions that the iPhone 4S sales will make up for the missed target, the September quarter is being labeled as Apple’s ‘transitional quarter.’ Sales were predicted to reach in excess of 22 million for the last quarter but fell short, only managing 17 million units. This also represented a decrease from the previous quarter.
Analyst Gene Munster believes ‘units were pushed from the Sept. quarter into the Dec. quarter as customers waited for the ‘iPhone 5’.’ The first week of sales of the iPhone 4S is not over, yet they have already surpassed the predictions of 2.5 million. Apple themselves feel confident that iPhone sales will hit an all-time high next quarter, predicting a record breaking revenue of $37 billion.
Adding to this confidence from the company is the evidence of loyal customers. According to Apple Insider, surveys have suggested 94% of iPhone owners intend to upgrade to another iPhone. In addition to Apple’s confidence in their iPhone 4S, analyst Munster is also predicting great success for the company’s other popular device, the iPad. Judging from the success it has had so far (166% sales growth year over year) he predicts another 52 million will be sold in 2012.
Do you agree that the iPhone 4S will redeem the disappointing Apple sales?