Although Apple’s profit has increased by 54%, the company’s launch of the iphone4s has fallen short of expectation. In the first quarter of its sales, it is reported that sales of iphones, ipad, and macbooks have jumped 21 percent since last year. However, after announcing the fourth quarter results on Tuesday, company’s shares have dropped 7 percent. With a 16% drop from the third quarter of iphone sales, Apple blame rumors of the release of a new iphone in the fall.
Although iphone sales have been lower than estimated, the new CEO, Tim Cook, said he was confident that Apple would set an ‘all time record’ in the holiday quarter. With Android having a 43.4% of worldwide smartphone market share, Apple is still thriving in the mobile industry with a 18.2% market share. Even though the circulation of the launch of a new iphone caused many consumers to wait for the newer version, I believe these rumors will not be in effect in the long run. In addition, with increasing growth rate of the macbooks and ipads, Apple’s stock market shares will not be significantly influenced by its mobile phone line.
