Apple posted a drop in earnings for the third-quarter of 2012, which the company blamed on a drop in demand for Apple’s best-selling product, the iPhone.
Apple CFO Peter Oppenheimer attributed the 9 million fewer iPhone sales to customers holding off on purchases as they wait for the new iPhone 5 release, rumored to be in September.
However, that might be more wishful thinking on the part of Apple than the actual reason for lower earnings.
Apple’s iPhone is facing real competition from Samsung, with their Android-based Galaxy S III smart phone.
“Samsung reported this week that its popular Android-based Galaxy S III phone has sold over 10 million units in less than two months. Last quarter, Samsung took the mobile device lead from Nokia, which slipped to No. 2, with about 20% of the market. Apple is No. 3, with about 8%,” according to USA Today.
The numbers suggest that the Apple iPhone may be slipping in popularity, and not because consumers are willing to wait 3 months for the iPhone 5 release.
Apple stockholders demonstrated their lack of confidence in Oppenheimer’s claim of iPhone 5 limbo by driving down Apple shares 5 percent, to $571 on Tuesday.