back to article Peak Apple: First 'profit slip' in a decade - and, boy, it's gonna be BIG

Apple will reveal its first profit fall in a decade when it unveils its quarterly earnings later today, analysts say. According to Bloomberg, Apple's fiscal second-quarter income will probably have declined by 18 percent, year on year, to $9.53 billion. And even though revenue may be up 8 percent to $42.4 billion, this is the …

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      1. JEDIDIAH
        Linux

        Re: i was a mactard

        This is the flip side of "converting" people. They can "un-convert" as soon as the trendy thing no longer becomes trendy or something better comes along.

  1. James Micallef Silver badge
    Flame

    Flickering?

    "The market needs to see some evidence that the future looks bright because that candle is flickering"

    $9.5bln profit on $42bln sales?? Close to 30% margin??

    That's not a flickering candle, that's a towering inferno

    1. Uncle Siggy
      Mushroom

      Re: Flickering?

      > That's not a flickering candle, that's a towering inferno

      The light that burns twice as bright, burns half as long. And Apple have burned so very very brightly.

      1. Tom Maddox Silver badge
        Terminator

        Re: Flickering?

        "I want more life, fucker." -- Steve Jobs

  2. Thomas 4

    The main problem with Apple's recent releases?

    They're *boring*!

    Think about it. When the iPod first became mainstream it had interesting new ideas for menu navigation plus a crapton of storage. Then they released iPod Minis then iPod Touches and then introduced the Great Unwashed to the concept of a touch screen smart phone. Then they brought out an iPad and world+dog wanted one.

    All they've done in the past few years is tread water. The Macbook Air is just a slightly slimmer Macbook, there's no glaring changes between the iPhone 2 and iPhone 5, aside from screen and processor upgrades. They need someone that's prepared to make *changes* and venture on risky products.

    Show us something *new* and I might show you some of my money again, Apple.

  3. Armando 123

    Wow.

    "The market needs to see some evidence that the future looks bright because that candle is flickering.”

    I wish my company's candle flickered that bad ...

    No one can constantly be 100% on top of their game. Analysts and financial drones may wonder what's wrong, but sometimes you have to take a period of retrenchment to get things right. And considering how Jobs' last year and illness may have affected Apple, that time of uncertainty and distraction might have just shown up in the marketplace this last quarter.

  4. Anonymous Coward
    Anonymous Coward

    Perspective matters

    The analysts are the pet playthings of the investors. The investors exist on a market principle based on unlimited, predictable growth for all eternity. Some are daft enough to buy in, when a business is clearly at or near its peak. When growth is slower this quarter than it was for the same quarter last year, some of these people spit their dummies out. This is normal.

    The incubation and investment model needs to change.

  5. Anonymous Coward
    Anonymous Coward

    The channel was stuffed last quater, and this is the result.

    Channel stuffing is the last ditch trick to try and pretend your product is great and selling by the bucketload.

    It worked for Nintendo with the Wii, it worked for Microsoft with Kinect, but it's fallen flat on it's arse for Apple.

  6. Blubster
    Meh

    Peak Apple: First 'profit slip' in a decade

    Oh dear..... how sad..... what a pity........ never mind.

  7. Frankee Llonnygog

    "Or not"

    -said other analysts

  8. MooseNC

    Correction

    "...failing to introduce yet more exciting new technology into the marketplace."

    Should read;

    "...failing to introduce yet more exciting newly bedazzled technology into the marketplace."

  9. Dana W
    Happy

    Because selling more smartphones and tablets than the year before in a computer industry that has had drops across the board is obviously failure.

    And if we talk about this enough we can distract the fact that Microsoft is in freefall and heading for a crash of epic proportions.

    Windows sales are TANKING yet the "Peak Microsoft" articles are nowhere to be found.

    1. JEDIDIAH
      Linux

      Don't swim in the Kool-aid

      > Because selling more smartphones and tablets...

      Is an argument that only plays well to the rest of the cult. Everyone else realizes that ARM devices are quickly becoming a replay of MS-DOS and the original Mac. The platform with 10 cutthroat vendors trying to sell you variations on the same thing are finding more success catering to more people than a one hit wonder.

      The iPad Mini is a great illustration of that.

      Apple finally came around and decided to supply what the rest of the market was offering.

      It turns out that there are a lot more "irrelevant geeks" out there than Apple or it's fanboys realize.

      1. Dana W

        Re: Don't swim in the Kool-aid

        Its called numbers, no matter what they had to do to get them. Sales are UP, not down. The "Apple is dying" crowd are the cultists.

        I bought an iPad mini because I WANT a smaller tablet. Apparently a lot of people did as well, its selling great. Hardly part of the "Apple is dying" conspiracy.

        1. John Brown (no body) Silver badge
          Stop

          Re: Don't swim in the Kool-aid

          "I bought an iPad mini because I WANT a smaller tablet"

          I think you missed the point there. It's not that the iPad mini is selling well or not. The point is that Apple, until recently, had decreed that a smaller iPad would not sell because no one would want one one therefore Apple would not build and sell one. Rather than innovating with a smaller form factor to meet market demand, they had to have the proof shoved in their face (and for Steve "no smaller iPad" Jobs) to be out of the game)

          1. LPF

            Re: Don't swim in the Kool-aid

            Pretty sure , before the iPad was being launched al you idiots were saying that it was a toy, no one would buy it and making rather juvenile jokes about womens sanitary products...remind me again how much did Apple make, how many companys are still trying to match them?

    2. Anonymous Coward
      Anonymous Coward

      @Dana W

      The gradual decline of Microsoft is a given, so nobody finds it newsworthy.

    3. Daniel B.

      @Dana W

      There have been articles on that. Even here, this article mentions that IDC blames Win8 on the PC market crash. And they're right.

      The thing is, MS screwing the pooch and crash-landing isn't even news anymore. It's more like the usual news whenever Redmond and Windows is involved.

    4. Michael Thibault
      Trollface

      Well...

      of course, those articles aren't to be found: 'ya can't make no money from them'. Besides, it's widely known, and accepted, that Ms jumped the shark YEARS ago. If any company deserves encouragement in its earthward spiral, it's Ms. Don't see much of that, though--most everyone loves a free ride, I guess.

  10. John 104

    Wrong and Right

    You lot are all wrong on the beer thing. I've had my share of British beers. Boring. Guiness? A stout? Ahahahaha, barely. It's drinkable mind you, but here on the West Coast there are numerous stouts that put it to shame. Its my last ditch go to when nothing else good is on tap. Cascade hops are good and what the brewers are doing with those and other hops is fantastic. Imperial IPAs are some of the most complex tasting beverages you will ever drink. And the 9-11% alcohol doesn't hurt! Best part is, with the revolution in brewing going on in this country, you can find a quality micro brewery easily. My small town of 8k has 3!

    And yes, Microsoft is in the toilet. Windows mobile is so so and Windows 8 is a first rate pain in the ass to use. They had better do something very quickly to clean up their mess or their market share is going to take a long dive into oblivion.

    Oh, and no one is screaming about it because everyone loves to hate Microsoft and everyone LOVES Apple, right?

    1. Richard 12 Silver badge

      Re: Wrong and Right

      You do know that Guinness is a mass-market beer?

      It should be compared to something like Budweiser or another beer you will find in every single bar in the country.

      Mass-market beers are always like that - they have to be!

      If you want to compare mid-market beers that are easily found but not completely ubiquitous, look for Fullers, Greene King, Black Sheep and the like.

      If you want to compare micro-breweries, compare micro-breweries.

      Although you are right on one thing - the US microbrewery market is doing much better than the UK one. Thankfully the UK microbrewers are slowly making a comeback, which can only be a good thing!

      (And the ABV of a beer is irrelevant unless the intention is to get hammered or stay sober. It's all about the flavour!)

      1. Vic

        Re: Wrong and Right

        > You do know that Guinness is a mass-market beer?

        And Irish, AIUI, rather than British...

        Vic.

  11. Anonymous Coward
    Anonymous Coward

    AAPL maintains 50B p.a. cash surplus rate

    “Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

    I think AAPLs demise was prematurely announced

    1. Michael Thibault
      Facepalm

      Re: AAPL maintains 50B p.a. cash surplus rate

      >I think AAPLs demise was prematurely announced

      Who is it who keeps DOING that? Must be the umpteeninth time AAPL've been having their going-out-of-business sale.

      Anyway, a point related to the overall chatter here: if there's a bubble, it's in the artificial world of investors, analysts, stockholders, 'players', etc.. They're NOT connected to reality.

      1. Armando 123

        Re: AAPL maintains 50B p.a. cash surplus rate

        "Who is it who keeps DOING that? Must be the umpteeninth time AAPL've been having their going-out-of-business sale."

        The MacObserver has kept a count of these things for years in their Apple Death Knell Counter. http://www.macobserver.com/tmo/death_knell/ Amazing what people have predicted, even the editor-in-chief once.

  12. rciafardone
    Meh

    The whole article in the last paragraph

    The core idea is in the last paragraph. Nothing more nothing less, just natural rebalance.

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