Apple under pressure over profit

Apple is coming under pressure to keep its reputation as a leading technological innovator after posting its first profit fall in a decade.

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Apple under 'tremendous pressure' to retain crown

Apple is a more mature company than it was five years ago and with that maturity we see more stability than surges in profits and revenues.

They are under tremendous pressure to retain the crown of being an innovator. The next 12 months will be crucial for Apple to promote the view that it still has the power to create new products.

– Ajay Bhalla, professor of global innovation management

iPhone and iPad sales rise despite Apple profit fall

Apple's first profit slide in a decade came despite an increase in sales of its iPhones and iPads.

The company sold 37.4 million iPhones in the quarter, compared to 35.1 million for the same period a year ago, and 19.5 million iPads compared to 11.8 million.

Tim Cook, Apple's chief executive officer, remained optimistic on the company's future, saying:

We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad.

Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline.

Read: 'Apple has lost its aura of exceptional'

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Apple's ability to innovate 'brought into question'

Its ability to innovate and shock has been brought into question, whilst the company is under pressure to deploy some of its massive cash pile/

However, with the new versions of the iPhone and iPad yet to come, and with the rumoured Apple TV and iWatch in the pipeline, it would be a brave call to continue to bet against Apple.

Despite the pressure, the market consensus is still a strong buy.

– Richard Hunter, Hargreaves Lansdown stockbrokers

Apple profits could be hit 'by as much as 20%'

  • Last week Apple lost its position as the world's most valuable publicly traded company when its shares hit their lowest levels in a year-and-a-half
  • Some analysts say the fall in profits could be as high as 20%, compared with the same period last year
  • The result would mark the first time Apple has suffered a fall in earnings since 2003 when it opened its iTunes Store
  • Apple has faced pressure from investors calling for new big products along with mounting competition from Samsung which unveiled its latest Galaxy S4 handset last month