Apple has reported huge profits in its report for the last quarter that ended in December 2012, and although the numbers are said to be stunning, the company’s stock fell considerably after the report was released.
Apple’s profits were just a little over $13 billion, thanks to the holiday season, which is by far the most lucrative season for such companies. Apple generated revenue of around $54.5 billion in the quarter. Apple’s CEO Tim Cook seems pretty much satisfied with the quarterly report. He said in a statement, via Mercury News:
“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter. We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”
The disturbing factor, however, is that the company’s value declined in the share market, while the market is now filled with predictions of Apple’s slow growth in the current quarter. Although Apple did show growth in the last quarter, the pace was much slower than its performance in previous years. This, along with the predictions of the company’s slow growth in the current quarter, led to the decline in Apple’s share price. Mercury News quoted an analyst John Jackson as saying:
“Apple is looking downright earthly. Apple’s formula is maturing, and it may be that we’ve left the era where the ripple from new products alone had seismic consequences for Apple’s performance. The new definition of what Apple innovation really means is becoming much more nuanced.”
Although there is no denying that Apple’s or any other company’s growth will be slower in the current quarter as compared to the holiday season, Apple’s share holders are not very optimistic about the company’s prospects.
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