Originally Posted by paulbrock
$13.1b profit versus $13.06b profit for the same period last year is unlikely to keep investors happy..."record figures" or not. Margins down too. 24% profit vs 28% profit. One way of looking at it is they spent $8bn more to get a further $40 million profit.
Nail on the head.
It doesn't matter how much revenue they take if the profits are static, all that means is they're running just to stand still.
It's related to the points people have made about Apple having become increasingly reactionary - the iPad Mini apparently has a much lower profit margin than the full-size iPad, something Apple would not have wanted but were forced to accept to avoid losing ground on their competitors.
They're still a long way off being in genuine trouble but I think they've been found out a little, which is reflected in the share price.
The idea that the most 'valuable' company in the world makes what are, in essence, shiny toys (not a comment on Apple's product range in particular, the same is true of most of Samsung's products etc) always struck me as weird. The drop in the share price seems to be more of a self-correction than anything else.