Apple Stock Falls Despite Quarterly Gains
RENEE MONTAGNE, host:
And many consumers don't seem to be cutting back on iPods or Macintosh computers. Healthy sales of those electronics were behind a 36 percent jump in profits that Apple reported yesterday. Net profit rose to more than $1 billion in the recent quarter. That's one of the strongest in the company's history.
NPR's Laura Sydell reports.
LAURA SYDELL: Mac computers sold well, spurred by what analysts say were sexy new designs, positive feelings about other Apple products and consumer complaints about the rival Windows operating system.
Analysts had predicted a slow in iPod sales, but they turned out to be wrong. Apple sold more than 10 and a half million iPods, and nearly 1.7 million iPhones. The company is predicting slower sales next quarter.
Apple is known for conservative predictions that it then turns around and beats. However, this time analysts think the company is being realistic. Unlike other tech companies that may continue to get a boost from a strong overseas market, Apple is more vested in the United States. It predicts that if American consumers tighten their belts, there will be fewer sales of iPods and Macs.
Despite the conservative outlook for next quarter, Apple is considered a bellwether tech company, and its positive results will help quell investor fears about the weak economy.
Laura Sydell, NPR News, San Francisco.
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