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Apple Blames Rare Earnings Miss on New iPhone Anticipation, Economy

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Reuters: Apple's quarterly earnings report was good, but not good enough to meet analyst expectations. The company's revenue increased 23 percent year-over-year to hit $35 billion, but that fell $2 billion short of projections. Net income was $8.8 billion, a 21 percent increase that was 10 percent below Wall Street forecasts.

Apple CEO Tim Cook blamed the results on the sluggish European economy and consumers postponing purchases because they are waiting on the iPhone 5.

"Clearly it was a disappointment," said analyst Channing Smith with Capital Advisors Growth Fund. "We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S."

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