After much speculation regarding Apple’s falling share prices, the company yesterday announced its £6.2bn net profit figure for the January to March period.
Although this news is more promising than many observers were expecting from Apple, the $9.5bn profit margin is still considerably less than last year’s $11.6bn. It appears that a high volume of iPad and iPhone sales were the main driving force behind Apple’s revenue this year, despite the growth rate in sales dipping slightly.
CEO, Tim Cook, who has fought off criticism of being inept compared with Apple’s founder Steve Jobs, stated: “Though we've achieved a credible scale and financial success, we acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012."
Apple’s official financial report comes after news emerged of Apple’s share prices falling to a worrying level last week, suggesting that Apple is in decline. Figures released showed that the company’s shares have dropped to $402.80, their lowest since December 2011. The report also declared that Apple is no longer the world’s most valuable company in the world, falling behind Exxon Mobil.
Although Apple’s official financial statement looks better than expected, the company is not out of the woods yet. Recent attacks on Apple’s failure to release enough new products throughout the year, as well as increasing competition from the likes of Samsung, has really dented Apple’s once almost conceited confidence.
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Written by Charlotte Kertrestel