Dallas, Texas 01/29/2014 (FINANCIALSTRENDS) – Apple Inc. (NASDAQ:AAPL)’s much awaited quarterly results are out and turned out to be not so impressive, even when the company’s iPhones and iPad sales were at record levels. The first-quarter numbers were not convincing to the investors, who were looking for more finer details of the progress of the company.
A new Product Line
The quarter results magnified the impending concerns over the company’s lack in area of launching a breakthrough product.The company’s last product launch, iPad, came four years back and the concern is clear as Apple’s products are endangered by the latest competitive mobile devices. The quarterly reports also highlight the fact that Apple’s new sales constitute a large percentage of existing customers, who are upgrading their product line and therefore, there is a serious lack of new consumers. As per the analyst of Gartner, the demand market for the high end versions of smartphone has reached saturation. And if this holds true, then it becomes all the more difficult to take its stock price back to anywhere near to its September 2012 price of $700.
Quarterly Results And Plans Ahead
Supporting the Apple CEO Tim Cook’s statement of new product launches, analyst are positive that the company will expand its product line this year. They project launch of an Internet-connected “smartwatch” soon as the company tries to get hold on the underdeveloped market of wearable computing. Apple has been loosing majorly to Google’s Android based devices, which are comparatively cheaper and boasts of bigger screens. But, the anonymous sources report that Apple is also gearing up to launch a 5 inch wide iPhone in the market towards the end of the year.
During the first quarter of the fiscal, Apple garnered earnings of $13.07 billion, that is, $14.50 per share, which is marginally changed from its previous year’s $13.08 billion revenue. The first quarter revenue was up 6% at $57.6 billion.