Apple Has A Low MomentDamien Moye
I know, everybody’s talking about the 17-year old Brit that made $30 million dollars selling his app. But I found a story just as startling, for the wrong reasons. Analysts predict Apple is about to report it’s first quarter of income gross loss in 10 years.
I’m no stock market guru, so check the chart yourself. Analysts expect Apple’s Earnings Per Share (dividing the company’s earnings by number of shares) to grow from over twelve dollars a year ago to $10.12 today. Some experts say the EPS rate is as low as $9.23. This is not some ‘end of days’ crisis. This is more like expectations were higher than reality. Last year and the year before, the company’s gross margin were at an all time high. Now, in the wake of new released products (new Macs, iPhone 5) that didn’t sell as planned, those gross margins fell 10 percent.
Look of what they’re not telling you. In a mater of months, Apple’s stock went from nearly $700 in Sept. 2012 to around $462 as of this morning. Yes, the iPhone 5 was a setback, but look at the flops over the past year, like the Apple Maps fiasco. The competition, like Android and Samsung, has really stepped up to the plate. That’s why they ran that negative ad campaign a week or two ago. Last paragraph, I said, this first quarter loss moment wasn’t an ‘end of days’ crisis. But when you stack crisis on top of crisis, eventually bricks will fall like Jenga. So should Apple hit the panic button now? Or is this just a phase all corporations go through?