Wednesday, Apple Inc. has reported the kind of quarter they had that most large companies would love to have — the company has posted a profit of $13.1 billion and selling over 28 percent of iPhone units and more than 48 percent of iPad units which are considered the two biggest products of the tech giant.
For several months, the stock price of Apple has been sinking with eleven percent as its lowest.
The great success of the company in the past years has become its foundation for a lot of investors to expect nothing but perfection from the tech giant. While Apple is still pondered as the most pioneering and original company in this industry, it is still facing challenges.
Presently, Apple is dealing with with heightened competition from its biggest competitors such as Google and Samsung. The market continues to grow as a lot of people are already using smartphones.
The Cupertino-based company is now shaping up for cheaper product categories, which means a lesser profit margin. Now it becomes harder and harder for Apple to keep up with its increasing growth rate, having sales of over $160 billion for the last twelve months.
For several times, Apple has reinvented itself with its innovative products and it could do it again and again.
An associate professor at Carroll School of Management at Boston College, John Gallaugher explained that Apple has genuinely been able to invent whole new markets, which makes it different from other companies like Microsoft.