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Apple Remains One Of The Most Profitable Companies

Story By: Larry Stine



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  Original Published: 7/26/2013  Apple's tepid growth has led investors to push for its next big product.   And as Felicia Taylor reports, the future's not looking so dim for the former Wall Street darling.   Analysts had been expecting a lackluster quarter for Apple but it's really more of a mixed picture.   Apple earned 7.47 cents a share versus expectations of 7.32 a share.   Revenues came in pretty much in line with expectations at $35.3-billion versus $35.2-billion.   The company sold 14.6-million Ipads, which was less than the expected 16-million but it sold more than 31-million Iphones, which beat estimates and had the stock gaining in after hours trade.   But Iphone sales are plateauing and many are asking what's the next, new hot product.   It's last nig innovation was the Ipad and that was launched in 2010.   Some investors are getting impatient with CEO Tim Cook and question whether he can be an innovator like Steve Jobs.   And now many experts velieve smartphone sales are close to saturation.   When custimers do buy, they opt for the less expensice Ipad mini or the older Iphones, decreasing profit margins.   Many are hoping the proposed iwatch and Itv will be the big draw and give back the company's cool factor.   The stock has taken a beating, down by about 40-percent, losing almost half it's value since hitting $700 about 10 months ago.   Yet it is the most cash rich company in the world, with about $140-billion dollars in its coffers.   Apple fans have been sued to hefty profits and sales, between October 2009 and early 2012, Apple doubled its quarterly earnings in eight of of 10 quarters and sales grew by more than 50-percent.   Apple's financials may not be heading in the right direction but that doesn't mean it isn't successful.   At least one expert believes this company still has the right stuff.   "As bad as missing this quarter might be for Apple, they still have the holiday quarter to look forward to and Apple is settled on sort of a schedule where sort of their new stuff, their new toys come out in the fall and that could be potentially huge for them," says Peter Pachal, Mashable.com Tech Editor. "Doubly so if they actually do finally come out with a game changing product like and iwatch or an Apple TV. So apple really has an opportunity for a huge come back even if this quarter may not be as good as some people like."   Apple is the sixth largest American company in terms of revenue and forward guidance is at the top end of expectaiton for the fourth quarter.
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