Apple bloggers typically have trouble understanding the market’s reaction when things turn south after Apple reports a phenomenal quarter, but even they understood investor trepidation following Apple’s quarterly report on Tuesday afternoon. At $18.4 billion, the company posted the most profitable quarter in history, topping its own prior record by nearly half a billion dollars. Exxon’s $15.9 billion quarter had been the record until last year when Apple smashed it with an $18 billion December quarter.
During this more recent holiday quarter, Apple also managed to narrowly top the revenue and iPhone sales figures it posted last year, coming in at $75.9 billion and 74.8 million, respectively. Both figures marked records for the company, but both figures also missed analysts’ expectations. That wasn’t the real problem, however. The real problem was that Apple finally confirmed fears that have been swirling for the past few months: In the coming quarters, iPhone sales will fall. More →