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Weak iPhone sales drag down Apple's holiday earnings

It looks like a steep drop in iPhone sales over the holidays caused the company to miss its earnings targets, though its stock still rose in after-hours trading.

The results are out for Apple's first fiscal quarter of this year, and it looks like a steep drop in iPhone sales caused the company to miss its earnings targets, though its stock value still rose in after-hours trading.

Over the holidays (during the three months ending December 29th) Apple reported earning nearly $20 billion in profits on $84.3 billion in revenue, which seems like a good haul but is yet a bit less than the (record-setting) $88.3 billion in revenue it generated during the same period last year.

While the company saw earnings in almost every sales category go up year-over-year, a big drop in iPhone sales brought the company's bottom line down. Apple reported $51.9 billion in sales of iPhones during the quarter, nearly $10 billion less than the $61.1 billion iPhones brought in during the same quarter a year prior.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term," Apple CEO stated in prepared remarks accompanying the release, noting that Apple's active install base of devices also hit 1.4 billion during this quarter. 

Apple is now projecting it'll earn between $55 and $59 billion in revenue during the current quarter, which ends in March. 

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