Two years ago, Apple overtook Exxon as the world’s most valuable company. It was a heck of a feat for a Silicon Valley company: for the first time, the world seemed to value silicon computer chips more than the bubbling, black goo of long dead dinosaurs. The future seemed rosy, and in the following months, Apple’s share price eventually rose to over $700 a share… before cratering thanks to bizarre Wall Street pessimism.
Somehow, though, even though analysts are bleaker about Apple’s futures than they have ever been, Cupertino has once more managed to claw the title of world’s most valuable company from Exxon. How?
Update: Guys, sadly, we’re having server issues that makes this impossible. Stay tuned for the front page for updates on the call as it happens.
In just a few hours, Apple will be hosting its Q2 2013 financial earnings call, and it’s bound to be an interesting call. It’s no secret that Wall Street is expecting a bloodbath, and is calling for Tim Cook’s head amongst fears of stagnating iPhone growth, but can Apple outperform the Street’s expectations?
Check out our summary of what to expect if you want to know more about the expectations going into this thing. Starting at 5PM Eastern/2PM Pacific, we’re going to be live blogging the call, so make sure to check back at this space then. We’ll be covering quotes and questions from the call, as well as posting our own live commentary. Hit the jump for our live blog, and make feel free to listen along if you want.
Apple will announce its second quarter financial results at 5 p.m. EST today, and this could be one of the company’s most interesting earnings calls for some time. Wall Street has been less than optimistic about the Cupertino company’s recent performance, and some believe that Apple will post its first quarter of negative growth income for over a decade.
But some analysts are a little more positive. According to averages put together by Yahoo! Finance, Apple is likely to announce revenue between $41 billion and $43 billion for the second quarter, with margins between 37.5% and 38.5%.
I’ve been writing for Cult of Mac for almost three years now, and in that time I’ve covered some pretty farfetched Apple rumors. But the latest from Forbes comes with a whole new level of crazy.
“Some Wall Street sources close to some Apple executives” say the Cupertino company could be searching for a replacement for Tim Cook, it claims, before suggesting Cook could turn Apple into another Hewlett-Packard or JC Penney and insisting “Apple’s shine has faded” since the passing of Steve Jobs.
Earlier today, we reported that the Wall Street consensus was that Apple’s profit in this last quarter probably shrank for the first time in a decade, and that results will be even more dire next quarter, with iPhone sales units being extremely low.
But Wall Street’s pessimism in regards to Apple is, as usual, nuts. For Apple to perform as low as Wall Street thinks it will next quarter, Apple would have to show zero growth in the iPhone market compared to the same spring quarter a year ago. This would rank it as one of the smartphone industry’s worst disasters ever. Which is crazy, because Apple’s selling more iPhones than ever.
Samsung has today announced its estimated earnings for Q1 2013, and it looks like the Korean electronics giant is set for another record quarter, exceeding Wall Street expectations. The company has forecast a 53% rise in profit to 8.7 trillion won ($7.7 billion) for the three-month period between January and March, driven by smartphone sales.
The consensus on Wall Street seems to be unanimous: for the first time in decade, Apple will report lower income this quarter than it did the year before. But don’t panic: even Wall Street doesn’t think Apple’s era of profitability and innovation is at an end.
Wall Street has spent most of the last six months hyperventilating about the future of Apple, chomping at their fingernails and openly wondering if Apple is taking too long to innovate in the post-Jobs era.
Over at the Apple Gazette, Robin Parrish has put together a simple graphic, showing Apple’s historic product pillars. Essentially, if you add it all up, the average time between major product pillars for Apple is three years and ten months.