Wednesday, July 25, 2012

Do We Expect Too Much From Apple?

Apple released their quarterly earnings last night and the analysts were disappointed in the actual verse estimate. Despite rising year over year, it just wasn't good enough.  The challenge may be in what lens we look at companies like Apple.  Is it fair to look at it so closely over a quarter, especially when product life cycles and new release dates can significantly affect short term buying behavior.  I mean why buy a new iPhone today when the rumors of a new model before end of year causes us to wit on the sidelines to wait.  And once the new iPhone, new iPad, and other releases occur, won't they tend to send unit sales through the roof.  I mean the first week of a movie release is always higher than the 5th week.

Financially, Apple is still a rising star. And while the short term bump on the stock price is part of the game, Apple continues to impress in the long run.  Knowing that there is product to be released, seeing how well the iTunes business grows as a result of these sales, and the impact Apple has on other companies and businesses, I still believe that Apple is a long term play.

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