July 23 - Apple earnings beat forecasts thanks to much stronger-than-expected iPhone sales, temporarily beating back fears Apple is losing its dominance. Bobbi Rebell reports.
Apple sold a whole lot of iPhones, and that helped them beat earnings forecasts. 31.2 million phones, far more than the estimated 26 million- and a record for the June quarter. Reticle Research's Ross Rubin: SOUNDBITE: ROSS RUBIN, PRINCIPAL ANALYST, RETICLE RESEARCH (ENGLISH) SAYING: "The iPhone number was a nice surprise. Sometimes we see demand for an iPhone slow down a bit when a new version is expected in the next quarter, but this was very strong for the iPhone." The solid showing eased concerns that growing competition from rivals and a maturing smart phone market are hurting demand for its top product- and sent its stock up in after-hours trading. Shares of Apple have been rotten for some time- down about 40 percent from their peak of over $700 last September. Apple's other products didn't sell as well. Demand for iPads were down as were sales of Macs. But Apple is gearing up to announce new products this fall. SOUNDBITE: ROSS RUBIN, PRINCIPAL ANALYST, RETICLE RESEARCH (ENGLISH) SAYING: "They talked a lot about a broad range of initiatives. It wasn't just the hardware. They talked about moving into schools with the iPad, moving into enterprise with the iPad. Also a lot of cloud activity and new content choices available on Apple TV. So even though some of the device categories, Mac, iPad may be maturing now, slowing down, we are seeing how the company is trying to really build out that ecosystem in the future." Even though last quarter's numbers were a relief, investors are still waiting for Apple to prove it has the next must-have product.