Apple shares fell nearly 5% in after -hours trading just because the company only made a net profit of £8.8bn in the three months ending in June, up 21% from a year earlier but lower than forecast.
Apparently £35bn in sales (up from $28.6bn in 2011) isn’t enough to keep investors happy.
Apple, of course, has more cash to spend than the United States government.
So why does the word ‘greed’ come to mind?
And has anyone but me noticed that faltering economic recovery in the United States and the weakening European consumer demand in June which no doubt has played a part in the ‘disappointing’ report on Q3 profits?
Of course Apple is facing increasing competition, particularly in its IPhone range from both Samsung and HTC. The group will be under pressure to come up with a new generation of products to continue to secure its position in the technology sector –but then, what company, in this sector isn’t expected to do the same?
I think it’s time for some perspective.
- The capital value of the Queen’s property portfolio is now worth £8bn
- France is facing a budget shortfall for the entire country of £8bn
- Housing benefit for all retired people in the UK will move to 8bn by 2060
- Tom Alexander has bid £8bn for Everything, Everywhere (the Orange & T-Mobile networks)
- Goldman Sachs have recently paid out bonuses of $8bn
I admit that I am using $8bn/£8bn liberally and that US dollars and British pounds aren’t exactly equal, but I hope you get the gist.
Here are the main points:
- £8.8bn is a lot of money.
- £8.8bn is even more amazing set against the context of flailing world economies.
- £8.8bn represents a solid performance in a weak market.
Perspective is everything.
Sandra Malone from Marketingmoves.
