February 3, 2023
Ithaca, NY | 2°F


Apple upgrades may save stocks

For the first time in almost a decade, Apple fell short of analysts’ earning predictions last quarter. This is just the latest bruise in a bunch of bad Apple stories in the past few weeks.

Apple’s lackluster numbers and the death of its CEO, Steve Jobs, have raised the question — and provoked action, as some investors sell off stock — of whether Apple can continue its tech dominance. Based on predictions coming out of Apple headquarters in Cupertino, Calif., and its record-breaking history, Apple will strike back with the iPhone 4S for a blockbuster winter to end its negative streak.

With Apple’s fiscal year ending in September, analysts predicted it would rake in $29.5 billion in revenue, but the company was $3 million shy of last quarter’s record-breaking $28.5 billion. However, Apple did surpass its own prediction of $25 billion.

Investors worry that Jobs’ death and a hardly redesigned iPhone could upset the company and sour its stocks this fall. But, Apple’s prediction for this coming quarter says something quite different.

Apple has never made more than $30 billion in one quarter, but its hope to exceed $37 billion for next quarter would demolish its old reputation. Those are numbers of confidence coming from the company, and for good reason: it’s almost holiday season.

With reports saying Apple sold more than 4 million units in its first weekend, the iPhone 4S is setting records. For those who were expecting a brand new design, the 4S was anticlimactic when Apple announced it only made minor improvements to the latest model. But with its beefed up processor and Siri, a new voice command technology, the device has led consumers to flock to wireless stores.

Smartphone users on carriers outside of AT&T will finally be able to make the jump to Apple, which for the first time has released a brand new iPhone model to Sprint and Verizon as well. And with a fall release — instead of the traditional summer unveiling — Apple can expect to attract new customers with the iPhone 4S hot on the market in the lead-up to the holidays. As prices drop on older models, which even have the slick iOS 5 software installed, Apple will see its numbers shoot up during this quarter. With lower prices and a better product, Apple is a winner for the future.

Apple’s predictions show that the company is moving forward, and moving fast. Though investors are cautious, Apple is going to make history with the powerhouse iPhone 4S on the smartphone market. And with a new pricing scheme that makes it easier for people to choose the iPhone, Apple isn’t going anywhere as the leading tech force. To count it out now is a mistake.

TJ Gunther is a senior journalism major. Email him at tgunthe1@ithaca.edu