Apple Posts Record Revenues for 1QFY14, but AAPL stock Price Tanks on Weak Guidance:

Apple Inc. registered with the ticker name AAPL design, develops and sells consumer electronics, computer software and personal computers. This American multinational corporation headquartered is located in Cupertino. Apple was founded by the Steve jobs. Their best line product includes Mac computers, i. Pod players, smartphones and tablets. As far as revenue is concerned it is the second largest I.T Company.

For the first quarter of fiscal 2014, AAPL reported record revenues and the sole reason for AAPL earnings is that it sold more ipads and iPhones. On revenue of $57.6 billion the reported EPS is of $14.5 whereas the estimation of EPS is of $ 14.09.

The company has a record ipad sale of 26 million units beating all kinds of AAPL estimates by one million, Sales increases at a rate of 14% YOY. In the same way the sales of iPhones also increases while analyst were expecting the sales of 54 to 55 million units during the quarter while the actual was 51 million units. Hence the number fell short of what expected. The sales of Mac computers also rise as compare to previous years. The company expects its margin to be around 37% and 38% for the current quarter but following the AAPL stock news, the AAPL stock price shed 8.1% after hours.

Despite of the good AAPL earnings still there is a concern related to the company growing prospects. The consumers has become a price conscious. Most of the smart phone makers are competing on a price which ultimately gives consumer a benefit in the shape of reduced prices. But as far as Apple is concerned yet it has not decided to introduce low-end phones in the market.

When it comes to the new product launches, the company has also far behind in addition to growing price competition. Samsung and many other has launches its new product whereas no new Apple products have entered the market since the introduction of ipad in 2010. Also Apple IOS face a competition from Google Android operating system.

To counter the severe competition from other companies, Apple is maximizing its effort to gain its market share in emerging market. The company has also made a deal China Mobile (CHL) which is the world biggest carrier could also bolster sales. Also in late 2013 Japanese telecom and DoCoMo started offering iPhone. Apple has relaxed its policies and offered favorable terms on selling its devices through retail outlets that enables Russia’s second largest mobile operator, OAO MegaFon (MFON) an opportunity to sell its iPhones again in 2010.

In order to cash in the preference for bigger displays Apple is expecting to launch devices with large screen size. The company has also started a project of mobile payment system. In the iTunes store more that 400 million users use credit cards. AAPL estimates that this project will bring stronger results in the future.