Despite Profits Apple Disappoints Shareholders

By: Zain Nabi  |   January 24th, 2013   |   Apple, Business

Even though the revenue and profit Apple registered in the last quarter are the ones many companies can only dream about, the shareholders of the Silicon Valley giant are not very much optimistic about the company’s growth in the current quarter and that is why Apple’s shares declined considerably just a few hours after its report for the last quarter was released.

 

Analysts had predicted sharp change in Apple’s shares even before the report was released. However, they had anticipated that the share could go either way, upwards and downwards, depending upon the nature of the report. The quarterly report shows revenue of over $50 billion, but the growth in the quarter was pretty slow as compared to the previous years. Also, the company has predicted even slower growth for the current quarter that has worried many of the shareholders.

 

According to The Wall Street Journal, Apple’s stock fell 9.7% to $464.09 on Wednesday, just a few hours after the company released the quarterly report. Meanwhile, Apple CEO Tim Cook has expressed satisfaction about the outcome of the report. He and many other analysts are of the view that Apple is heading in the right direction with everyone in the company focused on long-term future.

 

Not to forget that Apple is reportedly going to launch three iPhones in 2013. These moves are in line with the company’s plan to expand its market and reach out to a large number of people. This calls for reducing the price of iPhones because at present it is not affordable by everyone. If this happens and Apple increases its market share by covering a broader audience, its sales could increase considerably, but that is not going to happen soon. This could be the reason that shareholders are not very much thrilled about immediate growth prospects of the company.