Apple (AAPL +0.17%) has reduced its guidance for its upcoming 1Q 2013, the company revealed in its press release announcing 4Q 2012 results. The iPhone and iPad purveyor now expects a significantly lower net profit figure of $11.75 in the upcoming quarter. This is $3.74, or 32%, lower than average analyst expectations of $15.49. It also falls short of the $13.87 that the company earned in its 1Q 2012.
Revenue is now anticipated to come in at $52 billion, a 6% drop from analyst predictions of $55 billion. Apple expects its gross margin will be 36%, the lowest figure in several years. Gross margin for 4Q 2012 was 40%.
The upcoming quarter is particularly crucial for a consumer electronics firm like Apple, as it comes during the sales-happy holiday season.
Apple CFO Peter Oppenheimer said the expected shortfall is due to higher costs related to the company's proliferation of new products, including the just-introduced iPad Mini. CEO Tim Cook said Apple was "unwilling to cut corners" in the production of such goods for the sake of short-term gain.
