5 things we learned from Apple's disappointing earnings report

Apple met or beat analyst forecasts and sold record numbers of iPhones and iPads last quarter. So why is its stock down?

Apple staff members cheer before the Oct. 20 opening of the new Apple store in Wangfujing shopping district in Beijing.
(Image credit: Feng Li/Getty Images)

Apple just had the kind of disappointing quarter most companies would die for. The Cupertino tech juggernaut posted $13.1 billion in net profit — $13.81 a share — topping Wall Street estimates, on $54.5 billion in revenue, roughly in line with expectations. It sold a record number of iPhones (47.8 million) and iPads (22.9 million), and did all this in a fiscal first quarter that was a week shorter than last year's. Nonetheless, Apple's stock slumped 11 percent in after-hours trading. That probably says as much about investors as it does about Apple, but here are five things we learned on Wednesday about the company Steve Jobs built:

1. Apple is done 'sandbagging' earnings estimates

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.