It is expected that Apple Inc. is headed for yet another quarter of bumper profits, even as some of the investors are putting their money on an even better second half to this fiscal year as the electronics giant releases its much hyped new iPhone and the online cloud content storage services which have been long time coming.
The solid numbers in this week’s quarterly report from the company may help lift its shares which have been in a slump ever since CEO Steve Jobs had to take leave during last January citing medical reasons which weren’t specified. After having increased by more than four times their value in the last two and a half years, Apple’s shares have remained almost immobile. The share prices have gone up by almost 11% this year; however that’s quite far away from the targets of brokerage companies which pegged the stock at $450 or even higher.
A rise of around 2% was registered in the stocks on Friday as there was high anticipation for larger profits and revenue in the second quarter as the supply of the iPad is finally catching up with the demand and the momentum in the international markets is increasing. Channing Smith, co-manager of a company which owns Apple shares, said that when considered relative to the rest of the market, the stock is more than well priced.Another analyst named Tony Ursillo from a firm which has bought Apple shares remarked that there is always a time when the stocks of the company are at a standstill due to some minor short term concerns and that is the ideal time to get hold of some shares.
Along with Steve Jobs, who has survived a rare pancreatic cancer and is the hand behind the majority of iconic Apple products, there are fears in Wall Street concerning the rising prominence of Google in the market for smartphones and the increasing competition in the digital goods and content sphere as Google and Amazon.com are fighting for the honors.
However, it is expected that Apple is going to give out a positive picture for the short term with its report due on Tuesday. The good sales numbers of the now aging iPhone in the global markets along with the large demand for the new upgraded iPad have likely contributed to buoying the second quarter for the company.
