Apple’s ‘Amazing Quarter’ Isn’t Good Enough for Wall Street

NYT BitsWednesday, July 22, 2015

Screen Shot 2015-07-22 at 11.56.09 AMApple’s profit soared 38 percent and revenue rose 33 percent in its fiscal third quarter, as sales of iPhones continued to surge, Brian X. Chen reports.

“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” Timothy D. Cook, Apple’s chief executive, said in a statement, adding that excitement for Apple Music, its new streaming music service, was “incredible.”

Screen Shot 2015-07-22 at 11.56.31 AMYet the results still fell short of estimates by Wall Street analysts, who are accustomed to Apple blowing past projections and had been predicting sky-high sales of iPhones and the company’s brand-new Apple Watch. The disconnect between market estimates and reality sent Apple’s shares plunging in after-hours trading and highlights the expectations quandary that the company’s success has created. Read more »