Apple Profits Fall Short of Expectations

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Customers shop inside an Apple store on May 23, 2011 in New York City.

For the first time in years, Apple earnings and revenue have failed to meet quarterly expectations: the company came in about $600 million and $1.1 billion short in each, respectively. Apple blamed the shortfall on anticipation over the new iPhone 4S, saying consumers began holding off on purchasing new iPhones weeks ago once they knew a new model would debut this week. Still, it’s probably not the way new CEO Tim Cook wanted to start his tenure. He can still, however, point to strong growth: revenue, despite missing the mark, was nevertheless up 39 percent to $28.3 billion.