The shares in Apple have dropped by 10 percent after the sales figures failed to impress the investors. The quarterly revenue of a record amount of $55bn was not enough to lift spirits over the disappointing sales record of the recently launched iPhone 5. Analysts say that the company is at a risk of falling victim to its successes.
Apple’s shares in one its key Asian suppliers also took a nose dive. LG, which offers display for Apple merchandise dropped by 3.1% and Hon Hai, which provides assembly services for iPhones and iPads has also dipped by 3.2%.
Apple was unable to perform a repeat performance in its increase in profits since it remained unchanged from the previous year’s figure of $13.1 bn. The firm is said to have sold more iPads and iPhones in the last quarter but investors were still unimpressed since they expected more.
The Apple shares have fallen by approximately 30% over worries that the firm may be losing its cutting edge amid stiff competition. Samsung and manufacturers of Android-oriented devices (hold a higher percentage in the sales of smart phones) are now challenging the dominant position once held by the iPhone.
Nokia, once the leading manufacturer of mobile phones has reported profits in the final quarter of 2012 recording good sales of its smart phone (Lumia) in their first product launch ever since they joined forces with Microsoft.
With Samsung due to release their results, investors will be curious to know as to whether the Galaxy Smart phones were a success in the last quarter. Apple may have to rethink its strategy since it is no longer considered to be the market leader in matters relating to innovation. Jeffery Stuart of Normura agreed that Apple should create new products so as to kick-start their growth process.