Apple Profits Rise on iPhone Record, But Company 'Cursed by High Expectations'

By Craig Galbraith Comments
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**Editor's Note: Click here to see how some of the biggest names in communications fared in Q3 2012.**

Apple reported record sales of iPhones and iPad last quarter, but it wasn't enough to please Wall Street, which expected higher revenues.

The company's profit was up slightly – about one-tenth of 1 percent, to $13.08 billion – thanks in part to the nearly 48 million iPhones – most of them iPhone 5s – sold in Q4 2012. That was up 29 percent from the quarter a year earlier when the iPhone 4S was launched, the Wall Street Journal noted.

Revenue was $54.5 billion, up 18 percent, but analysts had predicted that number to be a little higher.

"The revenue number is dismal as far as what the expectations were," SICA Wealth Management's Jeff Sica told CNBC, noting that the company "has fallen victim to the curse of high expectations."

Sales of Macintosh computers and iPods were both down about 20 percent.

Apple's stock has taken a beating amid reports that it's cutting back on orders for the iPhone 5 and a growing consensus in the industry that it might have lost a little bit of its edge over the competition. After closing the day up almost 2 percent, Apple got hammered in after-hours trading Wednesday, down nearly 11 percent, to $458 as of 6:21 p.m. ET.

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