Apple just keeps rolling higher
When Apple Inc. announces earnings today, many financial analysts expect them to beat market expectations on the back of strong iPhone, iPod, and Mac computer sales.
Apple does not seem to have noticed that the world economy has been in a recession, or that sales in the tech areas in which it participates remain flat at best. Instead, Apple has turned in stellar numbers, combining growth with profits, in the smartphone, MP3 player, and personal computer marketplaces. In all three areas, they have outperformed virtually all of the competition, piling increased revenues on increased profits on higher share prices. That is expected to continue as earnings are announced today for the previous quarter.
The Cupertino manufacturer of iPhones, iPods and Mac computers is projected to post a 13 percent higher year-over-year earnings, increasing up to to $1.42 a share, according to Thomson Reuters, significantly higher than the top end of Apple’s own forecast of $1.18 to $1.23 per share. Incredibly enough, some Wall Street analysts are expecting even more. Apple’s habit of exceeding expectations has some industry experts think that the earnings increase will be closer to $1.60, with revenue increasing 17 percent to $9.2 billion, according to a Wall Street Journal story..
Still, some observers see problems. The largest may be an inability to keep up with the demand for the iPhone. With sales rising in all countries and and a new large deal with China, some feel that the iPhone supply chain will be unable to match demand. There is anticipated pressure in that market coming from a Motorola Android phone, and on the Personal computer side a raft of sleep new notebooks running Windows 7 are awaiting only the official release of the new Microsoft operating system to release stiff competition for Apple’s popular MacBook line.
The answer will almost certainly be somewhere between the “great” and the “absolutely stellar” when the numbers are released today. Regardless, almost any company in the tech sector would gladly trade their record over the last couple of years for Apple’s. There will be those who are disappointed with any numbers Apple posts today, but they will be wrong. Today’s financial disclosures will be neither poor or average. They will be at least good, where their competition has been mainly flat or below, and may even be worthy of a gold star.
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