Apple expected to report record revenues — but falling earnings

Fortune reported that Apple is likely to achieve record revenues in Q2—but the first fall in its earnings in a decade.

Apple’s revenues are expected to grow from $41 billion to $43 billion, another record for Q2, but margins are expected to have fallen substantially from a peak of just over 47 percent last year to ‘between 37.5 and 38.5 percent’ this year.

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Margins tend to fall with new products, due to high initial investments and reduced yields when pushing the limits of what can be achieved (as with the new iMacs), and it’s this falling margin that has impacted Apple’s earnings per share…

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Despite no new device last quarter, iPhone made up over 56% of AT&T’s Smartphone sales (2.8 million activations)

AT&T just released its earnings and showed strong iPhone sales despite having a 16-month old device on hand with updates looming.  The carrier reported activating 2.7 million iPhones in the quarter out of a total of 4.8 million total devices.  Android device sales doubled year over year.

Non-iPhone Smartphone Sales Increase. AT&T continues to deliver robust smartphone sales. (Smartphones are voice and data devices with an advanced operating system to better manage data and Internet access.) In the third quarter, the company sold 4.8 million smartphones, representing nearly two-thirds of postpaid device sales. Sales of Android devices more than doubled year over year, and almost half of all smartphone sales were non-iPhone devices. During the quarter, 2.7 million iPhones were activated.

Our polls show that significantly more than half of all US iPhone users go with AT&T, due mostly to the higher data rates and ability to talk and use data at the same time.

Press release follows: Read more