Did iPhone 4S Trip Up Apple Earnings?

Shares of Apple (NASDAQ:AAPL) are declining today despite a 54% reported increase in net income from the third quarter. The company’s growing net income still fell short of analyst predictions, which Apple (NASDAQ:AAPL) blames on a slump in iPhone sales in the latter part of the quarter while many customers opted to hold out for the new iPhone 4S that was released last Friday.

iPhone sales came in at 17.7 million, far short of the 22 million expected. iPad sales came in at 11.12 million above expectations for 10 million, Mac sales were up to 4.89 million, higher than targets for 4.5 million. iPod sales were at 6.62 million, below targets for 6.9 million.

Investing Insights: Apple Inc. Earnings Cheat Sheet: Revenue Strengthens Again by Double-Digits.

“We think the rare miss is explainable and provides an entry point for opportunistic investors,” wrote Mark Moskowitz of J.P. Morgan, who has a $525 price target on the stock, per Market Watch. Some analysts also believe that other Apple (NASDAQ:AAPL) concerns are affecting the stock price such as lower than expected sales of the Apple (NASDAQ:AAPL) iPad, the upcoming release of the iPad’s competitor, the Kindle Fire (NASDAQ:AMZN), and this was also the first financial report to be released since the passing of Steve Jobs. Also, recent Google (NASDAQ:GOOG) Android data has showed great sales for that platform, and other smartphone makers such as Microsoft (NASDAQ:MSFT) and Nokia (NYSE:NOK) are not ready to stop attacking Apple — especially during the upcoming holiday season.

Apple (NASDAQ:AAPL) is down 3.85% to $406 in the news today. Shares are up 31.24% in the last year with a 52-week range of $297.76 to $426.70.

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