Apple Snaps Growth Streak

For the first time in a decade, Apple Inc. posted a decline in profit. The feeling of fear in investors are slowly rising as Apple’s stock, one of the most widely held stock in the United States, dropped nearly 40% since their historical high in September of the year 2012. With the recent bad signs of Apple’s shares, Apple has planned to return cash to their shareholders with stock buybacks and more quarterly dividends through the next few years.

Meanwhile, Apple’s executives are still extremely confident in Apple’s performance in the near future and their C.E.O. has mentioned that Apple’s new products are going to amazing. Maybe this is a good time to stock up some Apple’s stock, or it could the worst decision of your life. As the smartphones slowly becoming commodities, it will be interesting to see how Apple will differentiate themselves again.

Apple’s main competitor, Google, has a stock price that is nearly doubling Apple’s stock. Maybe it’s time for Apple to look at a new direction in their products if their latest inventions will disappoint the company and their shareholders this coming Fall. Nearly two-third of Apple’s revenue came from their international sales, this could be a direction that Apple aims for in the future and try to compete in a larger market share globally.

-Derby Ng

http://online.wsj.com/article/SB10001424127887324874204578441153601139278.html?mod=WSJ_business_LeadStoryCollection

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