Apple is going to announce its first quarter earnings on Tuesday, April 23rd and considering the history of the Cupertino-based company it appears that the iOS device maker will once again post excellent results. However, Bloomberg has something else to say as according to its latest report the quarterly profits from Apple are likely to go down for the first time in this decade. In addition to this, Bloomberg also pointed out in this report that 14 tech analysts, who follow Apple have decreased the estimated stock price of the company during the last 30 days which has brought a lot of pressure on CEO Tim Cook to increase the sales of California-based tech giant and bring in new hit products. Shedding more light on the upcoming quarterly announcement from Apple, Bloomberg claimed that the income per share of the second largest tech company in the world might drop down by 18 percent to $9.53 billion or $10.02, whereas its revenue may surge up to 8 percent, which translates into $42.4 billion.
If this report turns out to be true then, it will be the sluggish growth rate Apple may achieve after 2009. Katy Huberty, an analyst at Morgan Stanley said that Apple may declare a better dividend or increase share buybacks with the announcement of the upcoming earnings in order to make its investors happy. Here is what Katy has exactly said:
“Apple may raise its current quarterly dividend by 17 percent to about $3.10 a share, according to a Bloomberg estimate, based on payouts of other large technology companies, Apple’s projected earnings and the amount of cash it holds.
The company’s profit margins have been squeezed by higher component costs and the introduction of lower-priced products such as the iPad mini. Apple probably sold 35.4 million iPhones in the latest quarter, compared with 35.1 million a year earlier, according to estimates compiled by Bloomberg. Bernstein’s Sacconaghi predicts 25 million units will be sold in the current quarter.”
In the meantime, the arch rival of Apple, Samsung is gearing up to make its latest flagship device the Galaxy S IV available in the stores for sale at the end of this week. Therefore, analyst Alex Gauna of JMP Securities in San Francisco believes that, “Things have changed for Apple,” as “the competition is more intense,” than before. So it’s a tough task ahead for Cook and his team, as along with the investors, analysts are now also losing faith in their company’s stock.
Source: iPhoneinCanada
Ex-Employee of Apple say Steve Jobs was Behind MobileMe’s Poor Launch
Addition of Hungary and Lesotho Enables Google to Reach 50 Country Mark for Street View Imagery
Lunches So Good Kids Can’t Ignore Them
Invigorating Ginger Smoothie
The U.K.’s Youngest Parents Ever
The new hair Jennifer Lawrence