Apple on Tuesday reported earnings for the third quarter of fiscal 2011. Shares of Apple Tuesday were trading at near-record levels as investors expected Apple to post its biggest June quarterly earnings ever, and the company didn’t disappoint. Wall Street was predicting revenue of $24.92b, a whopping 58% YoY increase, and Apple’s revenue for the June quarter came in at a mind-blowing $28.57b. Analysts predicted 16.5 million iPhones, 4.2 million Macs, and 7.8 million iPads with actual sales coming in at 20.34m iPhones, 9.25m iPads, and 3.95m Macs. Press release is after the break:
Despite ballooning revenues and a record of kick-ass quarterly reports, Apple’s stock has been downgraded from “market outperform” to “market perform” by JMP Securities. The firm said that it made the choice based on the “notable deceleration in [Apple's] primary manufacturing partner Hon Hai (Foxconn) that was emerging even prior to the amplified uncertainty created by developments in Japan.” JMP Securities suggested that Hon Hai’s sales decelerated from 84% year on year in December to 37% in January — then decelerated yet again to 26% in February. As a result, JMP Securities is also dropping its Q2 2011 revenues estimates from $23 billion to $22 billion.