Apple Shares Slump After Flat Earnings Report

Tech giant Apple’s shares dropped by almost 9% in after-hours trading following the company’s report of flat profits of $13.1 billion for the October 2013 to January 2014 quarter.

‘Happy with our record’

Tim CookThe earnings have certainly met and exceeded expectations, but the i-device makers have lowered their sales outlook for the current year which worried investors.

Apple CEO Tim Cook, however, said, “We are really happy with our record iPhone and iPad sales.”

Apple expected a revenue of between $42 and $44 billion for 2014, a figure slightly lower than previous forecasts.

Strengthened in China, weakened in Asia-Pacific

“Last week was the best week for activations we’ve ever had in China,” said the CEO, noting that iPhones are already available in 16 cities in China at the moment, following the firm’s deal with the world’s biggest mobile phone network China Mobile.

Sales in the rest of the Asia-Pacific, however, dropped 9%, and profits were eventually hit by fluctuating currencies, especially the Japanese yen.

Apple’s sales also slumped in the Americas.

The drop was partially due to the more than expected demand of the pricier iPhone 5S, disrupting the company’s supply chain to lessen the production of the 5C and create devices for the 5S buyers.