Apple's (AAPL) quarterly results were basically in line with expectations.
Traders had apparently been concerned that the quarter would be a disaster, because the stock jumped about 5% on the news.
But the news wasn't all good.
The highlight of the quarter was stronger-than-expected iPhone sales, which came in at about 31 million. The iPhone is Apple's biggest and most profitable product, so this is encouraging. One reason for the strong sales, however, was a drop in the average price of the iPhone, as Apple sold more cheaper and older phones as a percentage of the total.
This pressure on iPhone prices will likely continue as competition intensifies, sales in developed markets slow, and competitors offer ever-lower priced phones that do most of what iPhones can do. And a reduction in prices, though healthy for Apple's overall market share, will eat into the company's profit margin.
The big concerns in the quarter, meanwhile, wereRead More »from Apple’s Quarter Was Better Than Feared, But There’s Still Plenty To Worry About