For the first time in 11 years, Apple ended its fiscal year with a net profit loss. This comes even though iPhone sales are beating the analysts’ expectations, with a profit of 7.5bn.
In reaction, Apple boss Tim Cook insisted that “business was stronger than ever”.
Peter Oppenheimer, Apple ‘s Chief financial officer, explained that the loss was partly because it costs more to manufacture the company’s new iPads and Macbooks and that prices weren’t boosted accordingly.
The company tried to reassure the market, saying that its reserves were sufficient enough to cover the loss. This statement came after Apple’s stock briefly slid in the following hours.
At the moment, it remains down by more than 13% for the year.
“We’re at the point that people are getting anxious to see the next big game changer that Apple has,” says Evan Niu of the financial website The Motley Fool.
“Overall, this is a transitional quarter with the new iPads and iPhones coming out. This coming quarter will be the real test,” added Mr Niu.
For Apple this result is far from being alarming, and the next innovation will prove beneficial for the company.
Martin Bernard, IEJ 3F