Apple profits fall but beat expectations

Despite earning more than $6 billion in profit, Apple's latest earning report isn't good. CNN's Felicia Taylor reports.

Analysts have been expecting a lackluster quarter from Apple,but it's really more of a mixed picture.Apple earns 7.47 share vs. expectations of 7.32 share.Revenues came in pretty much in line with expectations at 35.3 billion vs. 35.2 billion.The company however sold only 14.6 million ipads which was less than the expected 16 million,but it sold more than 31 million iphones which beat estimates and has started gaining after iphone was traded.But iphone sales are plateauing.And many are asking what's the next new hot product.Its last big innovation was the ipad and that was launched back in 2010.Some investors are getting impatient with CEO Tim Cook and questioned whether he can be an innovator like Steve Jobs.And now many experts believed smart phone sales are close to saturation.And when customers do buy,they are for the less expensive ipad mini or the older iphone which is obviously decreasing profit margins.Many are hoping the proposed iwatch and itv will be the big draw and give back the company's cool factor.The stock is taking the beating,down by about 40%,losing almost half of its value since hitting 700 about 10 months ago.Yet it is the most cash-rich company in the world with about 140 billion dollars in its culverts.Apple fans have been used to have the profits in sales,between October 2009 and early 2012,Apple doubled its quarterly earnings in eight out of those ten quarters and sales were by more than 50%.Apple's finanical may not be heading in the right direction but that doesn't mean that it isn't successful.At least one expert believes this company still has the right staff.

As about missing this quarter might be for Apple,they still have the holiday quarter to look forward to.And apple is settling on sort of schedule where their new staff,the new choice comes out in the fall and that could be potentially huge for them.Doubling sale if they actually do finally come out with the game changing product like an iwatch or Apple TV.So Apple really has an opportunity for a huge come back even if this quarter may not be as good as as some people like.

Apple is the sixth largest American company in terms of revenue and forward guidance is at the top of expectations for the fourth quarter.