Today, Apple announced its earnings for the third quarter, and while Apple most certainly has had better quarters (Wall Street just expected more), Apple didn’t do terrible (Im sure any company would die for these numbers). Still, the company didn’t meet expectations. The company posted a revenue of $35 billion and a net profit of $8.8 billion. These numbers compare favorably to third quarter a year ago, which was $28 billion in revenue and a net profit of $7.3 billion. This does not compare favorably however with a $39.2 billion in revenue last quarter and $11.6 billion last quarter.

This quarter Apple sold 26 million iPhones, showing 28% growth from this time last year, but a decline from last quarter (35.1 million). The company sold 17 million iPads, representing a 84% increase from this time last year, and a 6.2 million iPad increase from last quarter. Apple sold 4 million Macs, keeping their positive year-over-year stride that Windows can’t seem to keep. This is just a 2 percent unit increase from last year Q3 but it still means that Mac sales are increasing, and if it weren’t for WWDC with its new MacBooks these numbers would have been lower and there might have been 0 or negative growth. The company also sold 4 million Macs last quarter, therefore there was a 0 percent increase there. Evidence that iPods are declining has been shown further with a 10 percent decrease of iPods from Q3 last year. The number of iPods sold was 6.8 million. Last quarter Apple sold 7.7 million iPods, thus providing further proof iPods are declining. Apple also announced a stock dividend of $2.65 per stock. Apple is looking ahead with their expected fourth quarter results of $34 billion, which is still lower then the amount this quarter. However, just because Apple says it happens, doesn’t always mean it will happen since Apple might not be including revenue coming from additional products they are expected to announce such as the iTV and the mini iPad. I believe that their revenue will be higher than they expect because of upcoming desktop computers, iPods, iPhones and a possible new iPad mini and a possible iTV. Their new Mac OS X will also provide revenue for the next quarter.

It appears that Apple has failed to impress this quarter, but is it really fair to judge this quarter as much as others? I know that wall street is wall street and they do what they do, but did Apple really do terrible in the circumstances? Ivy Bridge held back the introduction of the MacBooks and that certainly didn’t help Apple. iPod sales have been declining anyway. iPad sales were impressive despite a lot of it being lower end iPads (iPad 2). Macs are increasing at least by year (not by quarter). Apple didn’t introduce anything new this quarter besides delayed MacBooks, I mean people discussed them being available before June, somewhere around May. Apple did introduce OS X ML and iOS 6, which I’m sure are going to impress (also Mountain Lion goes on sale tomorrow). Unfortunately those sales aren’t included in this quarters revenue, which if it was, it certainly would have increased Apples sales. Apple didn’t have an insanely great quarter, maybe not even a great one. However, that might not be all Apple’s fault. It mostly is, but there are other factors in play here. Apple did introduce a new iPad last quarter, the iPhone 4S was still hot, and it still is, but now everyone is looking out for the iPhone 5, anticipating its arrival. That may have deterred people from buying the iPhone 4S. This is a quarter I like to call the “in between quarter”. Its in between the release of products that people want. The MacBooks people did want and only because of that want did Apple post positive Mac year sales from last year. Only one product was released this quarter, one product some people aren’t excited for. More people care for iOS, not Mac. Apple has brighter quarters ahead of it, the next one being one of them, with the new iPhone 5, with Mountain Lion and with a possible new iTV and iPad mini, and with more sales than this quarter.

I look forward to Apple showing what they are made of and beating their own expectations next quarter. Hopefully, Wall Street will lighten up on them a bit, but then again, maybe not. We can only hope. As of right now Apple stock stands at $567 a share, down an incredible 5.5% from this morning ($600). Lets hope that Apple can prove that it can win. Tim Cook, I hope you’re reading this and make next quarter a better one. Q4 2012 for Apple will last from June 30 until September 24th which, hopefully sometime in there, Apple will announce and release the new iPhone. It may end up being like this quarter, maybe worse, especially in terms of iPhone sales since people are waiting for iPhone 5. That is, if Apple makes Q4 another “in between quarter” like this one. If it is, at least they have school sales. Lets hope Apple impresses next quarter and every quarter following, we’re counting on it, because now, we don’t have Steve Jobs to save us again. Lets hope for the best.

Thanks for reading,

Joe