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Jobs blasts rivals as iPad sales disappoint
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Jobs blasts rivals as iPad sales disappoint
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12:39am EDT
Instant view: Apple iPad sales disappoint
12:39am EDT
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Jobs blasts rivals as iPad sales disappoint
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Apple Inc. CEO Steve Jobs speaks about an application for the iPad at a special event at Apple headquarters in Cupertino, California, April 3, 2010.
Credit: Reuters/Robert Galbraith
By Gabriel Madway
SAN FRANCISCO |
Tue Oct 19, 2010 12:39am EDT
SAN FRANCISCO (Reuters) - Apple Inc CEO Steve Jobs went on the offensive on Monday after a rare disappointment in sales by the iPad maker sent its shares tumbling, but even his biting words failed to reverse market sentiment.
Jobs, who has not addressed investors on an earnings call for two years, lashed out at competitors Google Inc and Research in Motion and dismissed the smaller tablets made by rivals such including Samsung and Dell.
"The current crop of 7-inch tablets are going to be DOA, dead on arrival," Jobs told analysts on the conference call. "Their manufacturers will learn the painful lesson that their tablets are too small."
Shares of Apple -- the second-largest corporation on the Standard & Poor's 500 index, after Exxon Mobil -- slid 6 percent in after-hours trading, which would be their biggest single-day loss since 2008.
Supply and production bottlenecks kept iPads, which have a 9.7-inch touch screen, from store shelves and buyers waiting weeks sometimes for their gadget. The company sold 4.19 million iPads in the fiscal fourth quarter.
"A little bit disappointing there. Street was expecting closer to 5 million units. The problem is supply, they can't make enough of them," said Gleacher & Co analyst Brian Marshall.
Analysts said sales should ramp up in the holiday quarter as Apple resolves supply hitches.
Gross margins fell short of target as iPads, whose profit margin is lower than it is for iPhones, made up a larger proportion of Apple's sales. Investors had expected more from a company that had smashed Wall Street's targets in each of the past eight quarters.
Gross margins came to 36.9 percent, below Wall Street's average forecast of 38.2 percent, despite better-than-expected components costs in the period.
"The one surprise is on the margin side. Everything else is pretty spectacular," said Gartner analyst Van Baker.
There was no disappointment in the iPhone, however, whose surging sales showed little impact from a PR debacle last summer over the device's antenna.
Apple sold 14.1 million of the smartphones, a gain of 91 percent and better than Wall Street had expected. The company said demand is still outstripping supply, with the iPhone now available in 89 countries.
Mac sales surged 27 percent to 3.9 million, at the high end of analysts' estimates. Apple Chief Financial Officer Peter Oppenheimer said the strong Mac performance was evidence that the iPad was not cannibalizing sales.
SURVEYING THE COMPETITION
Jobs noted that Apple's iPhone outsold RIM's BlackBerry in its most recent quarter. "I don't see them catching up with us in the foreseeable future," Jobs said.
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Oct 18, 2010 9:22pm EDT
iSuppli is a well known Apple tool. No way they will sell that many iPads.
Anytime Jobs comes out and tries to “JOB” competitors is when he knows things are not going 100% correct. Here comes the competition, and this scares Jobs.
He knows the bigger and better things are just around the corner!!!!
feverhost
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Oct 18, 2010 9:56pm EDT
I won’t be buying an iPad until it has a USB port and supports Flash.
bcope01
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Oct 18, 2010 10:35pm EDT
Bring on the Android pad! And please let it be on Verizon.
Apple makes over-priced fashion accessories. I’m looking forward to watching the maker of a smaller pad eat Apple’s lunch.
PaleRider
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Oct 18, 2010 10:51pm EDT
Wow… iPad sales disappoint… clueless writer. 4.2M iPads in its second quarter of sales. More than all of the crap netbooks combined in the last few years. With the next quarter, they will pass 10-15M.
Go have a look at who had put options on AAPL and you’ll have an idea why “analysts” said iPad sales were light. Wall Street folks lining their pockets.
Apple is worth $100B more than Google for a reason. All Google does is ads, ads that make money because Google violates your privacy.
VoicesofReason
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Oct 18, 2010 11:07pm EDT
Yeah, the andriod is gonna “eat Apple’s lunch”. . like the iPod’s lunch got eaten. . .or the iPhone’s lunch got eaten. . .you clowns make me laugh. . .
Just like the iPod and iPhone before it, the iPad is SUPERIOR to anything Microsoft, Verizon or any other crap company. . ..its so funny, its sad.
Radioguy
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Oct 18, 2010 11:16pm EDT
This article completely distorts the reality that happened today. Apple destroyed Wall Streets earning estimates – even after they *raised* them. Apple made 20.34 billion dollars in the September quarter. The highest analyst estimate was 20. iPhone sales reached 14.1 million, a 91% !!! increase year-over-year.
To say that Steve Jobs is attacking competitors because he’s afraid of the competition is complete BS.
Don’t forget. Reuters employs terrorists who shoot at US troops (and that is not a distortion).
goodrichard
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Oct 18, 2010 11:18pm EDT
Who cares what the Gartner twit predicts? They bleat and crow and everyone is supposed to believe what they say. They’re pawns of the Wall Street money-changers. Don’t believe a word they say.
meatpietatters
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Oct 18, 2010 11:21pm EDT
As a freelance writer my business relies on the Internet. My laptop and I phone are invaluable to me and I am satisfied with them. When the I pad was introduced I started to make some blog observations. I felt that the dimensions were awkward for taking it out of the house. If you went to a restaurant or a bar it would be difficult to take it to the restroom.If you had no need for the extras it would as in my case be difficult to exchange my I phone.That I simply put in my jeans pocket and I am good to go.Maybe Mr. Jobs would find a more marketable use for the I pad in industrial areas to replace current systems. Then each unit could be fixed at each location.
JayAdlerMusic
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Oct 18, 2010 11:32pm EDT
Tell Jobs to smarten it up..put a usb port in it and lets us use it on Verizon and he will have his sales… I’m att and would not make two mistakes ( iphone and ipad) so I will buy the Verizon IPad and wait out my ATT contract to buy a new Ihone. Oh the stupid business moves that keep a great company away from their destiny.
kulis
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