Apple Earnings Miss Blamed on Last Year's iPhone Release Mis-Step [Video]

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Posted July 25, 2012 at 5:03pm by Shalom Levytam

Apple's third quarter earnings fell short of many analyst's projections and came in only modestly higher than guidance. A mis-step with the release of the iPhone 4S, which Apple may never recover from, is being blamed.

Henry Blodget for SAI notes that last year Apple delayed the release of the iPhone and then released the iPhone 4S instead of the iPhone 5. Case manufacturers and customers were expecting a redesigned phone whose specifications had leaked prior to the event. Apple for some reason stuck to the old design with some minor improvements.

Blodget notes that this may have been a 'significant screw-up.' Apple's release of a 'refreshed' phone instead of a revolutionary product has opened the door for Samsung and others to leapfrog it. Although the iPhone 5 will likely best Samsung's Galaxy S3, Apple's lead has been squandered.

It won't then be long before Samsung, et al, release their next-gen phones, and these may once again leapfrog the iPhone 5. In other words, the one-year lead over the competition that Apple's iPhone always used to enjoy may now forever be a thing of the past.

Take a look at the video below for more...

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Apple Earnings Miss Blamed on Last Year's iPhone Release Mis-Step [Video]

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Dan - July 26, 2012 at 6:52am

Very true!! They are all imitators... Apple offers the best products!

Jack All - July 25, 2012 at 7:42pm

I won't buy another iPhone after I bought the 4S only to find it wasn't supported in the uk! I used to be an Apple fan but they ruined it for me.

joyz - July 26, 2012 at 3:34pm

That's changing In iOS 6

NoGoodNick - July 25, 2012 at 6:51pm

I blame myself

Me84 - July 25, 2012 at 6:36pm

I think it was a money decision rather than let's keep the lead one.

Juergen - July 25, 2012 at 5:37pm

Apple's profits are up 20% compared to a year ago, however market analysts were disappointed with that. But to call it a misstep? Are you on crack? Since when do you know if Apple misstepped? The 4 to 4S transition was no different than the 3G to 3GS transition. Since when is a company obligated to release a product to the specifications of rumours created by icopyeachotherblogstogeneratetraffuctoourscamads websites??

Me84 - July 25, 2012 at 6:38pm

Competition changed, so Apple should change to meet or confront the competition. I know they are leveraging 2 years on a single design, and that is good for them, but not good on competition because 2 years is a long time.

Frank - July 25, 2012 at 6:55pm

It's not their earnings that is the mis-step. It's their not releasing a new phone last year which has caused them to fall behind Samsung.

NoGoodNick - July 25, 2012 at 5:10pm

I'm queer. That's a fact