Apple is going to face Profit Drop? | Is it true?

Steve Jobs left an empty place in Apple, and even if the company managed to get over this misfortunate event pretty easy, it seems like the founder and the genius visionary of Apple would be missed more during the next years. Some predicted the disappearance of Apple immediately after the death of Jobs. However, it seemed like the company was solid enough, and that the true consequences of this event would be felt from now on.

The reasons for the expected profit drops are not so hard to understand: an increased and aggressive competition from Samsung, which comes with cheaper and more effective devices, the increasing production costs of Chinese workforce, where the Apple devices are made, and the numerous software mistakes made by Apple developers. The last one would be the failure of Apple Maps, which made millions of iPhone fans angry.

Sure, we can’t talk about the bankruptcy of Apple just yet. We are talking only about drops in profits, not about loses, which means that the company would win more money in the near future. It is the normal path of every company, and this profit drop is expected for a few years. However, it is the first drop since 2003, and it will probably bring new worries about the future of the company.

It is surprising that this drop in profits comes on the frame of an increased business revenue. In other words, Apple sold more devices, but for smaller profits. How is that possible? The officials of the company say that this profit drop was expected, as Apple tries to reduce the production costs and the prices of the iPhones, to meet with the competition of Samsung and LG, companies that are able to bring powerful devices in the market with a ridiculous small price.

The current manager of the company, Cook , claimed that the sales of 2012 Christmas are not a part of the latest financial report, and this is the reason why the numbers actually don’t represent the image of the company. The report contains the expenses made by Apple in October and November 2012, to prepare the 2012 Christmas, and the report for the first semester of 2013, which would contain the Christmas sales would probably look a lot better.

On the other hand, this might be only another rumor. Apple constantly destroys all the predictions made by pessimist analysts. Practically, any time when Apple is about to announce its profits, a large number of analysts rush to predict catastrophic figures. Apple knew a constant growth for the last 10 years, and even if the company might start to temper its growth, we are far from talking about problems at Apple. Considering the new releases announced by the company in 2013, such as a new iPhone and iPad, we would probably look back at the end of 2013 to laugh about those negative predictions. Only time would decide if those predictions are true, and if Samsung would manage to claim the first place in the world of mobile terminals anytime soon. 

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