Apple 3rd Quarter Earnings in 2012: Investors Hopeful Of Good Results
Companies Quarterly Earnings in 2012
Even brand Apple couldn’t escape the blow of times. The third quarter results of the PC and mobile giant fell below market expectations. So, its stocks took a tumble, and fell by 5 percent closing at $ 572.50 on Wednesday. However, with the next iPhone release on the anvil, trade analysts do not fear further fall of the share value. On the contrary, they have urged investors to consider it as the right time to invest more on Apple’s shares. The company attributed the fall in margin to a weak European economy and steady fall in iPhone sales.
Though most brokerages maintained their price targets on the Apple stock, leading ones like JP Morgan and BMO Capital Markets brought down the price target by $20. Canaccord Genuity, however cut its target only by $3. According to Thomson Reuters’ StarMine, about 22 analysts rate the stock “strong buy,” and 26 rate it “buy”. Agreeing with the report analysts said that by the end of the year, Apple’s shares would trade higher. They pin their hopes heavily on the to-be launched products, including the new iPhone 5. However, a senior executive of J.P. Morgan Securities expressed serious concerns over the unexpected fall in the average selling price (ASP) of Apple’s products and the fall of business opportunities in China.
Apple however asserted that it increased its iPad and Mac sales. The company sold 5 million more iPads in the quarter compared to the previous quarter. Additionally, the company sold about 4 million Macs in the second quarter. However, with the fall in iPhone sales, the company’s main revenue generating product, the results fell below expectations. Many see the fall in iPhone sales indicative of a growing demand for its next product. A recent survey revealed that over 90% of iPhone owners are planning to buy another iPhone, and with iPhone 5 all set to hit the market, iPhone sales can go only in one direction.