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Apple's margins, China sales take shine off quarterly results

Investors easier breathing, turned after Apple's quarterly report cards iPhone sales for a pleasant surprise. But the resulting share price gains may prove to be short-lived, as the Wall Street sliding around a dramatic drop-off in revenue its second largest market, China's profits and confusion distress.
Did not release a new product in the third quarter, Apple sold 31.2 million units of the iPhone - its most important device - or about 20%, more than analysts had envisioned.
The company's share price in after-hours trading up 5%, to a certain extent, Apple said it will buy back shares at a faster pace.
However, all Apple products in the Greater China revenue from 43% in the previous quarter and 14% from a year earlier slump - worrying regional smartphone penetration is still low.
Growing competition in a mature global smartphone market, coupled with lower prices on the rise of Apple's device line up, such as the older models of iPad mini mobile phone, push third-quarter profit margins below 37% from just over 42% same period last year.
Analysts and executives tried to explain in the Greater China region, including Hong Kong and Taiwan accounted for Apple's fiscal third-quarter revenue 13% slower.
BGC analyst Colin Gillis said Tuesday the stock market rally may soon lose momentum, because Apple plagued by problems such as lower prices and product pipelines uncertain.
Gillis said: "We are not in June may have any new product shipment." The average selling price (ASP) "The decline in profit margins will be under pressure. These things look like reality."
Apple's average selling price in the quarter was $ 581, which is $ 27, or 4%, from the prior year. Apple attributed this decline "hybrid products" - the company saw significant growth in lower-priced iPhone 4 - and foreign exchange issues.
"This is not just ASP itself, saying:" Gartner analyst Carolina. "You can see iPhone 5 BOM is going up and you spend more."
China shedding
Battle for supremacy of the global movement is now being played out like Apple, South Korea's Samsung Electronics Co., Ltd. and Huawei Technologies Co. and ZTE in China relatively short time, such as between the heavy hitters. Year or more of Samsung, Apple has been steadily eroded turf, especially in Asia, is also showing signs of fatigue, and earlier this month issued a disappointing earnings forecast.
Even excluding China, Apple's revenue in the Asia Pacific region fell 35% sequentially.
Apple CEO Tim Cook - who presided over so far in 2013 fell by 20 percent, a California-based company's share price - part of the blame on the economy and shortages, said he is still optimistic about China.
"Economic obviously does not help us, not someone else," Cook told analysts on a conference call.
He said, however, the revenue figures do not tell a complete picture. "Apple books revenue when it is sold to dealers, then sold the product to the consumer. Sold to consumers - or sell through in the industry say - only 4% from last year's fourth in China.
By the same measure, mainland China actually sold through the sale of up to 5%, year over year, although this is a slowdown, Cook said.
Finally, iPad sales, became mainstream Tablet PC - Equipment - underperformed. In this quarter, Apple shipped 14.6 million, a few million or less rough estimate.
Some investors believe that Apple keeps it created a market may be slipping on the field becomes more crowded, with the smart phone manufacturers, as well as Google and Amazon's piling in.
However, Ku Keti Note the use of the data shows that the iPad still hold a dominant share of Web traffic.
"IPad tablet computer from the account for 84% of network traffic," he said. "So, if there are a large number of other tablet computer sales, I do not know what they're using."
However, Forrester principal analyst Frank Gillett warned, iPad figures bear watching ahead.
, "He said:" You are suspect, if we reach saturation. "But you can not believe, as a Tablet PC idea is very compelling."
Some analysts said that, taking into account all these factors, the immediate stock rebound should not be regarded as proven, eased concerns surrounding the stock market.
"This is a good change of tempo to see a bit, said:" Hudson Square Research analyst Daniel Ernst. But the "profits still down year over year."
"This is how it before we see earnings will actively adopt a new product introduction," Ernst said. "This is a right direction, step by low expectations."
 



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