Arash Christopher Eslami's Blog

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Is Apple Lossing its Juice?


Apple delivered a disappointing 2012 3rd quarter revenue of $35B in the eyes of analysts at Wall Street who projected higher numbers.  It should be noted that Apple hit $1 billion above and better than their own, internal, analysts had forecast.  Still, they missed their numbers before not too long ago.

The reason Apple has been missing its numbers has been perhaps the transition from the company icon, Steve Jobs, to the current CEO, Tim Cook.  Instead it might just boil down to the product, that is, they didn’t sell as many iPhones and Macs as they normally do.  The company’s IPO was in 1980 with huge success and they have grown fast in recent years.  So it might be the company is in a stagnant phase of its growth.  Or is Apple fever beginning to fade out?

I doubt it.  Their iPads and iPhones will continue to sell big.  Yet there are those who say this is the beginning of the end and that the company want be half as much in 5 years as they are now.  Maybe people are getting quick to the fact that a new iPhone/iPad is released every year so the fever, for a phenomenal product, is finally tapering off.

Again though, on the company’s pros, its stock is $600 per share and even after a negative report, Apple’s market cap is $560 billion!  The company has plenty of cash for acquisitions, which might be the next big play since Google recently purchased Sparrow for under $25 million and Facebook’s acquisition of Instragram for $1 billion.

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