Apple Has Strong Quarter Earnings, But…

By Mike Wheeler

By Mike Wheeler

Since Steve Jobs passed away in October 2011, the vultures (whether it be competitors, or those who just hate the company for its success) have been circling around Apple hoping that with its Talisman no longer in charge, it is a matter of time before it starts slipping behind its competitors. Recently there have been signs of this with reports out of China saying that factories that are making Apple products have ordered less componentry to make the iPhone 5, which suggests the market for the product is at least stagnating, if not declining.

However, despite this, the company’s quarterly revenue was a record US$54 billion, with a net profit of just over US$13 billion. And while there were over 47 million iPhones sold iPads sold was also up, there was a decline in Macs and iPod sales, the latter probably more due to the fact you can use your iPad and iPhone to stream music, too.

Some analysts saw the result as stagnant, but it did cause the recently declining to stock to rally and it was up almost 2 percent to $514 when the markets closed in the United States.

Does this mean that the House of Apple is in the decline? Possibly in the computer market and MP3, but there is still a lot of mileage to be had out of the iPhone and iPad, but trends are suggesting that a lot of its competitors are catching up in that department. Apple CEO Tim Cook and his team are already looking over their shoulder as Samsung took the top spot in the smartphone market last year, while the new Blackberry 10 looks like it might be a winner and Nokia, having dropped its awful Symbian operating system in favour of Microsoft’s Windows Phone 8 might get it back into the arena.

In the tablet market, again Samsung is Apple’s main competitor, but there is also the rise of the Ultrabook, which is seen as a viable – although somewhat more expensive – option to the tablet.  Overall, the result for the first quarter is what was expected, without being outstanding. The next 12 months will give a fairer indication of where the company is heading, and more importantly, how much of an impact its competitors are having on Apple’s bottom line.

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