Apple Computer Inc, maker of the iMac personal computer, said fiscal third-quarter profit fell 70 percent, and sales this quarter may be less than expected. The company's shares fell as much as 12 percent on Tuesday.
Net income in the quarter ended June 30 fell to US$61 million, or US$0.17 a share, from US$200 million, or US$0.55, a year ago.
Sales fell to US$1.48 billion from US$1.83 billion. Profit was expected to be US$0.15 a share on sales of US$1.57 billion, the average estimates of analysts polled by First Call/Thomson Financial.
Apple isn't counting on an increase in demand that typically comes from students preparing to start the new school year, said Chief Financial Officer Fred Anderson. Sales to consumers show no signs of picking up, he said.
Revenue and profit this quarter will be "slightly" higher than the third quarter's, he said.
"They were definitely more cautious on the revenue outlook than people expected," said Andrew Neff, an analyst with Bear, Stearns & Co.
Apple's shares fell US$2.70 to US$22.40 in after-hours trading after dropping as low as US$22.04. The Cupertino, California-based company reported results after regular US trading ended on Tuesday. The shares rose US$1.14, or 4.8 percent, to US$25.10 in regular trading.
They have dropped 57 percent in the past year.
Apple had been expected to have profit of US$0.24 a share in the fourth quarter on sales of US$1.75 billion, the First Call poll said. Anderson declined to give a specific forecast or to predict results for the following fiscal year.
"Demand is weaker than it was a year ago," he said. "We don't yet see a rebound in the consumer segment."
Apple sold 827,000 computers in the quarter, a 20 percent decline from a year earlier, the company said.
Sales of desktop and laptop computers for users such as graphic designers fell. Sales of the redesigned iBook laptops for consumers and students more than tripled from last quarter.
Analysts say they expect Apple, led by Chief Executive Steve Jobs, to introduce products including PCs to replace the iMac line at a trade show tomorrow in New York.
Many customers are waiting for more software tailored for Apple's new operating system to be introduced before buying computers, Anderson said. The weak economy has hurt demand, he said.
Apple said it controls about 5 percent of the PC market. The company opened its first two retail stores last quarter.
Apple will open 10 more this quarter in locations including Plano, Texas, and Tampa, Florida, and will open a total of 25 by Dec. 31, Anderson said.
Apple probably will begin disclosing results for the retail stores with the quarter ending in December, he said.
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