And so it begins....
http://www.reuters.com/article/2012/10/25/us-apple-results-new-idUSBRE89O1M920121025
http://www.forbes.com/sites/connieg...ales-but-misses-on-profit-forecast-live-blog/
Apple sold fewer iPads than anticipated as the economy remained weak and consumers waited for the new iPad mini, which will hit store shelves next month.
Analysts say the real test for the company will come during the crucial holiday shopping season, when competition will reach fever-pitch with Apple, Amazon.com Inc, Google Inc and Microsoft Corp all fielding new gadgets.
"Going into earnings we were wondering if the slowing economy will catch up with Wall Street and it has," said Channing Smith, co-manager of the Capital Advisors Growth Fund.
First RIM, Nokia, Motorola, then Dell, Nintendo, Google, even Amazon just felt the pinch as Amazon will record a loss for the first time since 2002. Europe and Japan got sales weak for everyone all over & more competition and hardware costs is slowing up sales. This is the first red flag.
Remember Apple relies heavily on branding but it doesn't have a definitive competitive advantage that someone can't copy or create. All these smartphone makers are making the same product just slightly different features.
Apple relies on the brand to be able to sell it's products at quite expensive prices. The problem with that is sooner or later Microsoft, Google, HTC, Samsung, RIM, Nokia, Motorola are gonna be offering the same products but at different price points. They can make a tablet or smartphone product with the same features but at a lower cost for the consumer. Eventually that's going to catch up with Apple. You can only milk Jobs' inventions for so long before the market asks "what's next" ? Apple is a great success story but there are kinks in their armor....
When Apple can no longer match expectations of 30% + growth like they wanted RIM to, the market is gonna sell it off and look for the next bandwagon to jump on. It'll still be able to grow there's no doubting that, but it will not be able to keep shattering records over and over.