Apple Records Record Sales But Investors Not Satisfied

Despite exponentially growing in profit year by year, Apple’s stockholders were not pleased with the recent 1st Quarter reporting and subsequently Apple’s stock has dropped. Back in 2010 the technology giant sold 8.7 million units and has significantly grown to a reported sale of 51 million iPhones this past quarter. With such a big growth in just 4 years, it would be safe to assume that the stock would mirror the earnings and continue to rise, This is not the case as consumers/stockholders were projecting that number would be closer to 57 million units since the unveiling of the new iPhone and iPhone 5c.

C.E.O. Tim Cook, on a conference call with investors, stated that consumer demand for the iPhone 5c was so overwhelming that they were struggling to produce them fast enough to be sold. How do we know that Apple was falling short of consumer demand and confidence. Hours after these figures were reported, the stock dropped 8% and fast. But just when you think Apple is on the down, their overall sales numbers increased, revenues increased and the company is striving better than ever. Overall, sales jumped a substantial 6% to $57.6 Billion; just surpassing what analysts expected at about $57.5 Billion in revenue for the year.

All in all Apple might be lacking in one area but makes up for it in substantial sales in other areas. I am curious to see what Apple comes out with next and since they control a large part of the market I am also curious to see whether or not a new company can come out and compete with the tech giant.

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