Apple released its fiscal first quarter 2014 earnings yesterday after the closing bell, revealing its figures for the 2013 holiday shopping season. The company beat Wall Street estimates on revenue and earnings per share, though missed expectations for iPhone sales during the quarter, despite reporting a record 51 million units sold. So what gives? Apple’s iPhone 5c may be partially to blame.
Tim Cook admitted during the company’s earnings call yesterday evening that the lower-priced iPhone may not have quite lived up to Apple’s own expectations. Consumer interest in the phone “turned out to be different than we thought,” Cook admitted on the call. He didn’t break down sales between the iPhone 5s and iPhone 5c, though did say that consumers are “really intrigued by Touch ID.” That could be the case, though more likely is that consumers are more interested in the better iPhone, not the budget one that’s essentially an iPhone 5 in a plastic body.
Apple didn’t miss sales by a whole lot, and Wall Street seemed mostly put off by the company’s lower-than-expected revenue guidance for the fiscal second quarter. Eyes will be on iPhone sales again when Apple reports those results, too, since they will reflect how China Mobile customers have reacted to the launch. Apple shares opened down eight percent on Tuesday.