Contact Center Industry News

TMCNet:  Apple may see drop in profits for first time in nine years [Asian News International]

[January 21, 2013]

Apple may see drop in profits for first time in nine years [Asian News International]

(Asian News International Via Acquire Media NewsEdge) London, Jan. 21 (ANI): Apple, whose shares have lost 20 percent in the last three months, might be suffering its first decline in profits in nine years.

According to a survey, shares in Apple have declined since the launch of the iPhone 5 last September, marred by an unpopular decision to drop Google Maps for the company's own botched version that left navigators three times more likely to get lost, reports the Guardian.

Apple changes suppliers often and may, according to other rumours, be planning to use new glass technology on its devices.

And yet, Apple is widely expected to have sold close to 50m iPhones last quarter and fans can't get enough of its iPad and iPad Mini.

According to critics, Apple is an over-hyped phone manufacturer, which is about to be caught up by reality.

Walter Piecyk, analyst at BTIG, is worried about Apple's "compressed product cycle". The company could once rely on growing sales for its hit products even after their hype-fueled launches. The Apple fever is still there, but there are worrying signs that it has lost the ability to build on the momentum of those launches.

Apple is selling far more iPhones these days in more markets but sales are falling after launch. Piecyk said he expects that Apple will launch a new series of iPhones aimed a more cost-conscious buyers.

The company has not launched an entirely new product since the death of its founder, Steve Jobs. For a company whose share price has been driven by anticipation of a new blockbuster, that is an issue. Present boss Tim Cook is in need of some new surprises, ones that prove Apple hasn't lost its spark, the report said. (ANI) (c) 2012 All rights reserved. Provided by an company

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