The profits for Apple Inc have dropped once again even as iPhone sales are on the rise. However, CEO of the company, Tim Cook has sought to ease the jitters in the market that the company doesn’t anymore have the ability of innovation.
Profits for Apple came down for the second quarter on the trot by around 22%. They, however, managed to get over the estimates of the analysts as they recorded about 20% rise in the sales of iPhones. Cook said that he doesn’t think that the high-end Smartphone market has reached the summit.
The revenues of Apple were flat at $35.3 billion, which is about £23 billion while the net income is down to $6.9 billion. As far as the drop in the profits is concerned, CEO Tim Cook intervened by saying that they were excited about the latest releases of the operating systems iOS 7 and OS X Mavericks.
He further added that the company was busy working on something new where the world will see some awesome products.
The further added that the products will be introduced around fall in next year. And quite understandably, he didn’t give any idea of what the new products would be.
The share price of Apple went up by 4% to be at $440 in after-hours trading, after having come down by 1.7% during the day’s trading to $419.
Analysts feel that Apple should bring in the market a low-end iPhone apart from having one more product in the field of wearable computing in at least the next one year. That will help in giving a boost to the waning portfolio.
Tim Cook was asked if there were products or any services that would revive the primary Smartphone business he said that the company always strived to bring in newer services and products. He further added that they had lots of opportunities in expanding the market and lots of growth opportunities as well.
The sales of the iPhones did rise; however, the average selling price has come down from $613 to $581. This easily reflects the slowdown in the market for high-end Smartphones in most of the developed countries. The iPad tab sales also dropped by 15% to about 14.6 million, while the standard selling price stayed at $436 from $449.