by EMILY BEZERRA Social Media Coordinator
The infamous technology brand Apple has always been successful in the stock market. However, after receiving mixed second-quarter earnings, it is apparent that the company is it not living up to its usual success.
Apple is a lead brand in the consumer-electronics industry. The iPhone, iPod, iPad, Mac, and iTunes have earned Apple a top-ranking position among consumers.
Apple’s first-quarter earnings were “lackluster”, which caused the company to scale back iPhone orders.
It was estimated that Apple would pick themselves up and have succesful second-quarter earnings. Howwever, when their second-quarter earnings were announced, they did not meet expectations. The Apple stock market has created a roller-coaster of Wall Street because consumers are hesitant to buy/keep their Apple stocks. Consumers are not sure if Apple will make a comeback or just go downhill from here.
This time last year, Apple’s net income was $11.6 billion, selling stocks for $12.30 a share on a $39.2 billion revenue.
After their second-quarter earnings, Apple reported a net income of only $9.5 billion, with stocks at $10.09 a share on a revenue of $43.6 billion. Not only are these statistics lower than last year, they are a disappointment considering the estimated $10 billion earnings that were expected of Apple after the second-quarter.
Apple’s current situation is bad news for investors, considering Apple’s gross margins guidance for its second quarter came in below expectations. It is highly expected that there will be increased competition on pricing.
Apple could be in serious trouble due to their competition. The iPhone makes up 65-70 percent of Apple’s income. Although the iPhone has dominated the smartphone game for a while, there is a current outburst of new smartphones on the market, and they are earning consumer attention.
The Blackberry Z10 came out recently, with a design remarkably similar to the popular iPhone 5. Studies show that 55 percent of consumers of the Z10 come from different platforms – leaving their old smartphones for this new one.
“The new Blackberry actually looks really cool. I still wouldn’t trade it for my iPhone though,” says sophomore Tina Volkmann.
Another competitor Apple needs to look out for is Samsung. The release of their Galaxy S4 has consumers buzzing with interest and fascination of the techonology on the smartphone.
Apple’s CEO Tim Cook, in an attempt to calm down consumers, announced they will be releasing new technology in the fall. He claims Apple is working hard on developing new software, hardware, and technology that he cannot wait to release throughout the fall and 2014.
“Apple has always been such a large, dominant company. I doubt that any smartphone can top the iPhone, just like no HP can beat the Mac. As long as Apple stays technologically advanced, there’s no shot of them plummeting anytime soon,” says sophomore Brina Haugland.
When Apple hosts its annual WWDC (Worldwide Developers Conference) in San Francisco the week of June 10, there could be a potential product announcement. Otherwise, the world will just have to wait and see what is next for Apple.