Apple’s margins are slipping.
Apple shares on Monday took a 10 percent hit in after-hours trading after the Mac maker reported earnings that beat Wall Street expectations. The company reported third-quarter gross margins of 34.8 percent, down from 36.9 percent a year ago.
The Cupertino, California, computer maker reported net income of $1.07 billion, or $1.19 per share, on revenue of $7.46 billion, compared with analyst expectations for $977 million, or $1.08, on $7.37 billion. The company reported net income of $818 million, or $0.92 per share, in the same period a year ago.
“We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months," Apple CEO Steve Jobs said in a statement.
Apple shares lost $17.47, or 10.5 percent, to $148.82 in after-hours trading.
The Mac maker said iPhone shipments jumped to 717,000 compared with the 270,000 sold a year earlier. Apple shipped 2,496,000 Macintosh computers in the quarter, a 41 percent increase from a year ago. The company sold 11,011,000 iPods in the quarter, or a 12 percent increase from a year earlier.
Apple CFO Peter Oppenheimer said the company expects earnings per share of $1 on revenue of $7.8 billion in the fourth quarter.