Apple stock opened at $457.70 this morning, down more than 10%, following its financial results on Wednesday. The Cupertino company announced $13.1 billion profit for the first quarter of 2013, a slight increase over the $13.06 billion it posted for the first quarter of 2012. But despite that increase, it’s clear Apple’s phenomenal growth has hit a stumbling block.
Q1 2013 was a record quarter for Apple, with more iPhones and iPads sold during this quarter than any other. The company saw a whopping $54.5 billion revenue over the three-month period — a nice increase over the $46.33 billion it recorded for the first quarter of 2012. So why is Apple’s share price still tumbling?
Despite the increase in revenue, Apple’s profit for the quarter didn’t increase all that much year-on-year. In fact, when compared against last year’s revenue, it actually shrunk. That means Apple is now making less profit on every product it sells.
Because its incredible growth has slowed right down, Wall Street has reacted against it. Apple may well have had a record-breaking quarter, and it may well be doing better than any other company in the world, but if its profit isn’t growing at an incredible rate, then investors just aren’t interested.
With that being the case, who knows when Apple’s share price will start rising again. Not too long ago, it looked like it was going to become the world’s first trillion dollar company — but that achievement seems almost implausible now.