Apple Q3 warning on weak demand
"Like others in our industry, we are experiencing a slowdown in sales this quarter. As a result, we're going to miss our revenue projections by around 10%, resulting in slightly lower profits," said Apple CEO Steve Jobs.
For the quarter, the Cupertino, California-based firm now expects sales of $1.4bn to $1.45bn, compared to previous guidance of $1.6bn. However, it also expects reduced component costs to keep the effect on its earnings to a minimum: $0.08 to $0.10 per share, compared to previous guidance of $0.11 and above.
The company highlighted the consumer market, advertising and publishing for the shortfall, along with poor sales in Japan and Europe. Late-in-the-quarter sales boosts usually provided by sales to graduating students failed to materialize in the quantities expected, executives said during a conference call.