Apple to Post 1st Drop in Quarterly Profit in 10 Years

      January 24, 2013 11:30

      Apple is predicted to post its first drop in quarterly net profit in a decade. Bloomberg on Wednesday said Apple's net profit in the fourth quarter of 2012 is estimated at US$12.8 billion, down 2 percent on-year.

      The last time Apple saw its quarterly net profit drop was in 2003. The latest drop is largely due to lackluster sales of its iPhone 5. Apple even made the unprecedented move of offering the smartphone discount packages in China to get rid of inventory.

      The mid-priced iPad Mini allowed Apple to defend its declining market share to a certain extent, but that in turn has eaten into sales of the higher-priced iPads, eroding profitability.

      Earnings forecast for this year remains murky. Korea Investment and Securities predicts Apple’s earnings per share will drop 2.7 percent on-year due to its declining share of the global smartphone market. Market watchers expect Apple's lackluster performance to benefit archrival Samsung.

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