Since 2003, Apple has been exceeding analysts’ expectations but now the same analysts think the company’s profit will fall for the first time in over 10 years. Even worse, one Citibank analyst believes the iPhone 5S will be delayed, resulting in even more worry for Apple stockholders.
Analysts expect Apple’s quarterly report to show an 18% decline in net income with revenue growing by 8%. That would be the slowest growth rate Apple has seen since 2009.
More expensive components and lower-cost products like the iPad mini are eating into Apple’s margins. Demand is weakening too thanks to competition from Android OEMs like Samsung. iPad mini demand is growing weaker too, leading analysts to believe there will be two mini’s come upgrade time – a Retina and non-Retina model.
Foxconn is reportedly in a not so good condition too, as most of the manufacturing giant’s profits come from Apple and the weaker demand is hurting its revenue.
Looking on the bright side, Apple is still projected to report more profit than Google and Microsoft combined.
