Apple posts record sales but disappoints Wall Street

Apple announced its fiscal Q1 2013 earnings yesterday, the company pulled in a net profit of $13.1 billion on revenue of $54.5 billion. Revenue is up from $46.33 billion in fiscal Q1 2012, while the profit is flat from last year's $13.06 billion. Apple reports revenue, profit and iPad sales all hit all-time records, while iPhone sales increased 29 percent year-over-year to 47.8 million units..

Despite the record results, Apple is currently down 9.11 percent to $467.20 in pre-market trading as the figures came in below expectations, fueling worries that Apple is losing its edge in the mobile space.

On Wednesday, Apple said it shipped a record 47.8 million iPhones in the December quarter, up 29 percent from the year-ago period but below the 50 million shipments that analysts on average had expected.

"It's going to call into question Apple's dominance in the space. It's still one of the strong players, the others being Samsung and Google. It's still a two-horse race, but Android continues to grow rapidly," said Sterne Agee analyst Shaw Wu.

"If you step back a bit, it's clear they shipped a lot of phones. But the problem is the high expectations that investors have. Apple's conservative guidance highlights the concerns over production cuts coming out of Asia recently."

During the quarter, iPad sales hit 22.9 million, up from 15.43 million units last year. Interestingly, the company also seems to be suffering from the PC slowdown as Mac sales collapsed from 5.2 million units in fiscal Q1 2012 to 4.1 million in fiscal Q1 2013.

Source: Reuters