Apple is virtually unrecognizable from the company it was 10 years ago. It was on the steady way up following a shaky patch at the beginning of the century. It had the iPod, new iMacs and iTunes. It was to be 4 years before the iPhone arrived. Since then, every financial quarter has been better than the same three-month period year-on-year. It’s an incredible statistic. Every 2nd quarter for Apple has been more profitable than the same quarter the year previous, for ten years running. But that could soon change.
Cupertino’s Q2 earnings call is taking place tomorrow and Tim Cook is expected by analysts to announce a drop in profit compared to Q2 2012.
An earnings report tomorrow may show that fiscal second- quarter net income declined 18 percent to $9.53 billion, or $10.02 a share, according to analysts’ estimates compiled by Bloomberg. Revenue is projected to show a rise of 8 percent to $42.4 billion, the slowest growth rate since 2009.
It’s fair to say that Apple hasn’t had a great time on the stock market over the past 6 months. Despite announcing a record quarter for the end of 2012, investors still haven’t been keen on coughing up cash for a share in the fruit company. That trend will likely continue until Tim Cook announces a brand new, and exciting product. Rumors of defective iPhones, slowing down orders and waning demand won’t help. And according to analyst Balter, of Oracle Investments, nobody quite believes Apple has the magic touch anymore. When Steve Jobs said a new product was coming, it was fine. Not one has the same faith in Tim Cook.
What do you guys think? Does Apple’s performance on the stock market really matter? Or is fact that it keeps making billions in profit and has $140B in the bank the only thing that really counts for something?