Profit slide won't bite Apple

26 Apr 2013

When Apple announced its most recent quarter financial results, the news focus was squarely on the fact that for the first time in a decade, Apple's profits weren't up.

Instead, with revenue of $43.6 billion, it managed $9.5 billion in profit, down from $11.6 billion in profit for the same quarter last year.

One theory suggests that Apple's profitability has has dropped due to worsening market share because it's failed to innovate as it once did. That argument suggests that Apple's shifted into being a "mature" company in the company of names such as Sony and Microsoft; not exciting but solid, and not worthy of a $700+ share price tag. Mature and complex companies move like sloths, or at least that's the prevailing theory. Having had a revolutionary product in the iPhone - and the spinoff iPads - Apple's rested on its fantastically profitable laurels for too long.

Equally, there's a very popular viewpoint that says that all of Apple's design genius came courtesy of the late Steve Jobs, and that when he passed, Apple lost its innovative edge once and for all.

So with the double charge of no longer being helmed by the often-divisive Jobs and a lack of innovation, combined with falling profits, is it really game over for Apple?

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Photo credit: madlyinlovewithlife via flickr.

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