“When a company like Apple announces record profit for a quarter and its share price immediately plummets by as much as 9%, it’s easy to get confused,” Zach Epstein writes for BGR. “What sense could that possibly make?”
“Apple managed a gargantuan $13.1 billion profit on sales that totaled $57.6 billion last quarter. It sold more iPhones than it ever has before. It sold more iPad tablets than it ever has before,” Epstein writes. “Mac sales actually grew year-on-year while the rest of the PC industry is free-falling. So, what the heck is going on here?”
“It boils down to a single sentence: Investors care about the future, not the past,” Epstein writes. “A company’s performance each quarter is important, but far more important to investors is the picture of the future painted by a company’s performance and by its guidance for the current quarter… While 51 million iPhones is a massive number, the rate at which iPhone sales are growing has slowed substantially. Growth, of course, is key.”
Read more in the full article here.
MacDailyNews Take: If you think Apple is under pressure now, you haven’t seen anything yet. Until “it” is, or “they” are, revealed, nothing will alleviate the weight on Cook & Co.’s shoulders.