Post Earnings, Apple Witnesses Dip in Stock

 

 

Apple witnessed a decline of 3.6 percent in its stocks on Wednesday as share value went down from $600.92 to $577.41. This came as a surprise for shareholders and analysts. The decline is probably because of the company’s unexpected results from quarterly earnings reports announced Tuesday.

Apple was expected to announce a figure of $38 billion in revenue and 30 million in iPhone sales. It disappointed all by simply putting forward a number of $35 billion in revenue and 26 million in smartphone sales. This is after Apple has witnessed record-breaking sales with 17 million iPads over the last three months.

Post its earnings report, Apple tried to give clarifications why it was not able to meet the expectations of analysts. The company blamed its low earning on the weak economy in Europe and also on the buyers who have stopped buying their products in the wait for the announcement of next iPhone.

IDC technology analyst Ramon Llamas is of the view that shareholders should not lose their trust on Apple based on this quarter’s sales figures as Apple has lot of potential and great market in US alone.

Experts are of the view that with Apple planning to introduce pre-paid iPhones it is going to give rise to a whole new market.

“That’s a totally different business model,” said Llamas.  He also said that Apple is also planning to release the iPhone on smaller carriers across the country. He further went on to add that iPhone 4S though six months old is still fetching good sales for the company. Nevertheless, he humbly accepted that iPhone sale is likely to slow down as company plans to launch its next model.

“I fully expect a decline,” he said. “It will be a stretch for Apple’s people to sell all that inventory that they have and will have until the new version” is released.

Though, no details about the next version of the iPhone have been released yet. But, it is expected that company may be thinking of changing the screen size and adding 4G LTE technology in the new device. Nevertheless, experts are of the view that adding LTE technology will reduce Apple’s chances of selling the phone in other countries that have different standards.… Read the rest

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