“When Apple reports second-quarter earnings on Tuesday after the bell, sales will be down from the same time last year. That’s according to Apple’s own guidance,” Kif Leswing reports for CNBC. “Apple has been pummeled in the headlines all year. On January 2, Apple said that its critical holiday quarter revenue would be $7 billion short of its previous projection because iPhone sales had taken a beating in China.”
“Since then, Apple has made the rare move of cancelling a previously announced product, held a strange invite-only event at its campus without any new hardware products and missing critical details on the products it did announce, and most recently, settled a legal war with Qualcomm and paid it a one-time amount analysts believe to be in the billions,” Leswing reports. “Yet Apple stock keeps going up.”
“But Apple’s rising stock suggests that the market is finally digesting what the company has been broadcasting for years: Apple is changing its story — it’s not the iPhone company anymore, even though that single product accounts for over 60% of Apple’s sales,” Leswing reports. “Instead, Apple sells a slew of online services with recurring billing, so Apple deserves to be priced more like Amazon, Google, or Facebook.”
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MacDailyNews Take: Objects in media are smaller than they appear.