“Since last September, Apple’s stock price has declined by 40%, wiping out hundreds of billions in shareholder value and costing the tech giant the title of world’s largest firm by market capitalization, a distinction that once again belongs to energy giant Exxon Mobil,” Sam Gustin writes for TIME Magazine. “Last week, Apple shares fell below $400 for the first time since December 2011 after one of its key chip suppliers delivered a downbeat forecast.”
“Apple delivered its quarterly earnings report yesterday after the stock market closed, and for the company faithful, there wasn’t much to cheer; Apple shares ended flat in after hours trading. But let’s be clear: Apple’s recent stock swoon is, in part, a function of the company’s own astounding success over the last few years,” Gustin writes. “On Tuesday, Apple reported earnings results that would cause any other firm to jump for joy: It generated nearly $100 billion in sales over the last two quarters, and now makes more profit each quarter than arch-rival Google generates in revenue.”
Gustin writes, “It’s difficult to imagine what Tim Cook is going through right now. His mentor, Jobs, is widely considered to be a visionary on par with the greatest business leaders in American corporate history. Steve Jobs is irreplaceable, and Cook, a humble and brilliant operational wizard, knows that. The question is whether Cook can guide the company into the next phase of the company’s existence. He’s facing a host of challenges heading into the next quarter. Slowing growth, reduced margins, increasing competition. Apple remains the most profitable tech company in the world, but with no new products in sight, it could be a very long summer for Apple fans.
Read more in the full article here.
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