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iPhone sales boom but iPad disappoints Wall Street

Gregg Keizer | Oct. 29, 2012
Apple on Thursday announced record revenue on the back of booming iPhone sales, but for the second quarter in a row iPad sales came up short of Wall Street's expectations.

Gottheil thought it was better that Apple announced the new iMacs, even without any to sell, or without a way for customers to pre-order them, in the hope that that would pacify customers, "lock" them in to the iMac before they decided on a Windows all-in-one.

"But Apple's not been feeling any love for their desktops," Gottheil said.

Cook also used the earnings call, as he has a habit of doing, to ding the competition.

When asked about Microsoft's Surface RT tablet, which went on sale late Thursday in New York City's Times Square and will be available in about 60 stores in the U.S. and Canada on Friday morning, Cook admitted he hadn't touched one yet. But that didn't stop him from disparaging Microsoft's first-ever tablet.

"[From] what we're reading ... it's a fairly compromised, confusing product," Cook said of the $499 Windows RT tablet. "So I think one of the toughest things you do ... is to make hard trade-offs and decide what a product should be. I suppose you could design a car that flies and floats, but I don't think it would do all of those things very well."

Six months ago, and long before Microsoft took the wraps off the Surface, Cook had said something similar, calling tablet-keyboard combinations and so-called "hybrids" a cross between "a toaster and a refrigerator."

In after hours trading late Thursday, Apple shares were down $7.29, a loss of around 1.2%.



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