updated 03:10 pm EDT, Mon July 22, 2013
Actual results to be announced tomorrow
The analysis industry's consensus forecast for Apple's third-quarter results -- due to be announced tomorrow -- calls for a 22 percent year-over-year drop in profits, notes CNNMoney. Apple posted roughly $9 billion in profits during Q3 2012, but this year is expected to turn just under $7 billion. Revenue is predicted to remain flat at about $35 billion.
CNN suggests that the profit slide is attributable several factors. Apple didn't launch any major products during the last quarter, and the market for high-end smartphones like the iPhone 5 is thought to be plateauing. The company's customers are said to be veering towards low-profit devices like older iPhones and the iPad mini, but at the same time, Apple lacks any truly low-cost options for people who want a prepaid phone or who live in poor countries.
Should sales dip year-over-year, it will represent the first time that's happened for Apple in over a decade. Beginning in January 2004, around the launch of the iPod mini, Apple saw seven consecutive quarters of triple-digit profit growth. Profits multiplied by 20 after the launch of the iPhone in 2007. Between October 2009 and March 2012, Apple managed to double its quarterly earnings in eight out of 10 quarters, pushing sales growth over 50 percent in nine of them.