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Apple Inc. Message Board

  • frank_capra_04 frank_capra_04 Apr 23, 2013 9:21 AM Flag

    Apple Profits Are Expected To Shrink For The First Time In 10 Years

    Today, Apple will report its fiscal Q2 2013 earnings today at 2 p.m. PDT. Analysts widely expect the Cupertino company to post its first year-over-year decline in earnings in the last decade. But has Apple really begun its fall from grace, or is the house that Jobs built just falling short of its own impossible standards?

    Here's why Apple has been missing the mark in 2013.

    Growing Pains

    Apple has fallen victim to its own success, plain and simple. The company's been on top for so long, we just don't remember things being any other way. Apple's market and mind share are the stuff of legend, but they show signs of waning for the first time in… well, almost ever in Internet years. While any other company in the universe would be perfectly content being the world's former most valuable corporate entity, for Apple and its stockholders, second best just won't cut it.

    Last quarter, in spite of a $13.1 billion profit, unhappy shareholders punished the company for failing to meet revenue expectations with a 10% share price plummet - AAPL's biggest nosedive in years. As Q2 wraps, Apple investors and acolytes alike are still itching to hit the panic button. Arguably it's not because Apple's near-future profitability poses any real cause for alarm - perhaps we just don't remember how this whole thing goes for companies that aren't Apple.

    No Tricks Up Its Sleeve?

    Really, what could the company that brought little white earbuds into ubiquity wow us with next? The iPad Mini, Apple's latest mobile innovation - or iteration - is an exercise in practicality, a version of a revolutionary device with its ambition, processing power and pixel density scaled back and its price tag slashed. The iPhone 5, while slick, is old hat at this point.

    Apple will miss big.

    Watch and Learn

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