FollowThe quarterly profit level of Apple Inc. has dropped for the first time within the time span of a decade, due to launch of new items and products that has resulted in a decline in the profit margin and slow growth rate of the iPhone market.
In the last four weeks, it was observed that the estimation of Apple’s iPhone sales profit has been reduced by fourteen analysts in relation to the slide in the sales record from its highest profit in the month of September last year. It is speculated by industry analysts that Apple which is considered as the most prominent and valuable technological organization is facing tough and steady competition from its rival, Samsung Electronics Co. Due to this situation, the pressure is growing on Chief Executive Officer of Apple, Tim Cook who is trying hard to introduce new products in the market to regain back its profit sales.
Reports from analysts with data compiled by Bloomberg reveal that the second quarter in this fiscal year has witnessed a sharp drop by 18 percent which counts for around $9.53 billion, or average of $10.02 per share value. Revenue for Apple is showed to be an average of 8 percent which is the lowest since the year of 2009.
Talking about this issue, Laurence Balter, who is an analyst at the Oracle Investment Research based out at the Fox Island, states that the market is currently in slow mode for Apple. He adds that the future of the organization is flickering and they need to come up with something interesting to make the future bright and vibrant again. According to Katy Huberty who is an analyst at the Morgan Stanley stated in an early release conference that to keep investors pacified, Apple may have to increase their dividend in order to boost up the share scenario. It is estimated that the organization may think about rise in the quarterly dividend by average of 17 percent which is around $3.10 against each share, as revealed by the speculated report of Bloomberg which is in comparison to the payout of the other companies.
At the end of December Apple had $137.1 billion in cash value and investment which resulted in pressure from the investors to provide with more return to the shareholders. The profit margin of the company is also analyzed to have got squeezed due to low cost products, including mini iPad. In the last quarter of the fiscal year, it is estimated that Apple got to sell iPhones worth 35.4 million in comparison to its 35.1 million as per reports of the previous year.
