SAN FRANCISCO - With the impending iPhone 5 release date set to be around mid September to October, more and more customers are holding off buying new products now which may have cause Apple Inc, the world's largest company by market value, to report its slowest sales and profit margins in over two years.
Apple CEO Tim Cook and CFO Peter Oppenheimer admitted that speculation surrounding the next iPhone -- what many are calling theiPhone 5 - has affected sales of current iPhones. Analysts believe that it will be the best-selling smartphone yet from the company. Apple's iPhone generates more revenue, for example, than all of Microsoft's products combined.
Analysts estimate that sales of iPhones - Apple's biggest source of revenue - slid in the fiscal third quarter from prior periods. In a statement released by the company, Apple sold 26 million iPhones, 8.5 million fewer units in the third quarter and fell below analysts' expectations when it reported earnings for the third quarter of its fiscal year.
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"We're reading the same speculation about a new iPhone as you are, and we think this has caused some delay in purchasing," Oppenheimer said.
Oppenheimer was alluding to the fury surrounding the iPhone 5, its release dates and specs. Such rumors say the next version of the iPhone will have a larger and thinner display, a new dock connector, and a faster processor and graphics. Oppenheimer did not divulge any new product details or release dates.
The Cupertino-based company posted $35 billion in revenue and earnings per share of $9.32 for the quarter ended June 30. That was higher than Apple's own guidance of about $34 billion in revenue and earnings per share of about $8.68, while the Street had been expecting $37.2 billion in earnings and earnings per share of $10.35, according to data compiled by FactSet.com.
Apple shares slipped 5 percent to $571.15 in after-hours trading after the report.
"Our weekly iPhone sales continue to be impacted by rumors and speculation of future products," said Apple CFO Peter Oppenheimer.
Apple reported it also sold 17 million iPads in the quarter compared with almost 12 million in the previous quarter. And Apple sold 4 million Macs in the period.
