Apple posts record quarter, stock plunges

On Wednesday Apple reported their earnings for the December quarter. It was their best quarter yet, and the fourth most profitable quarter of any company in history. Yet their stock plunged by 11%. It's now trading at around 450 after cresting above 700 a few months ago. What gives? In short, market analysts tend to expect Apple to be perfect. And they saw some weaknesses in Apple's report: they had expected Apple to sell at least 50 million iPhones, but Apple reported 47 million sold. Apple also sold a million fewer computers than expected. And there's lingering doubt that Apple still has its mojo. Does the company still have the creativity to come up with yet another great new product that disrupts an entire industry? For its part, Apple isn't worried. Tim Cook reassured investors that Apple is working on some exciting new products. And Cook also reiterated Apple's mantra: customer experience is paramount. We want to make products that people love, that change people's lives. We've never been concerned about market share and we never will be. Or words to that effect.

I agree with an article in Slate that Apple is stronger than ever. You can read a transcript of Tim Cook's comments about the earnings report and response to investor questions on iMore.

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Jim Karpen holds a Ph.D. in literature and writing, and has a love of gizmos. His doctoral dissertation focused on the revolutionary consequences of digital technologies and anticipated some of the developments taking place in the industry today. Jim has been writing about the Internet and technology since 1994 and has been using Apple's visionary products for decades.