New York (CNNMoney) — When is $50 billion not enough? When you’re Apple.
Apple stock tumbled 8% in after hours trading Tuesday (July 21) after the company reported it sold fewer iPhones than expected in the past three months and offered a weak outlook for the current quarter.
Overall, sales and profits were strong. In its fiscal third quarter, Apple recorded revenue of $49.6 billion. Financial analysts polled by Thomson Reuters expected sales of $49.4 billion.
But the company sold “just” 47.5 million iPhones. While it’s up a stunning 59% from a year ago, and CEO Tim Cook said more Android customers are switching to the iPhone than ever before, the number of iPhone sold last quarter is still fewer than the 49 million analysts had forecast.
Apple also sold 11 million iPads and 4.8 million Macintosh computers. The company also said that revenue from the App Store doubled in the last quarter.
The number of Apple Watches it sold remains a mystery. Apple has relegated the Watch to its “other” category, along with the Apple TV, the iPod, and similar niche products.
Apple gave few clues about how well the Apple Watch is selling, only saying that sales exceeded the company’s own (nonpublic) expectations.
Revenue in the “other” category rose by more than $900 million from a year ago to $2.6 billion.
For the current quarter, Apple said it expects to record between $49 billion and $51 billion in sales, lower than the $51.1 billion Wall Street analysts had anticipated.
Strong overall sales helped Apple report $10.7 billion in profit, up an amazing 38% over last year – Apple’s fastest growth rate in more than three years.
Apple also now has $203 billion in cash, becoming the first corporation ever to cross the $200 billion mark.
