BUSINESS

Apple Profits Fall Short of Expectations

Daniel Barry / Getty Images

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.