Apple CEO Tim Cook made a very candid introduction remark during the earnings call. “We acknowledge that our growth rate has slowed,” Cook said. He then said that Apple has experienced “tremendous successes” over the past few years and that may be the reason why growth is slowing.
“Decline in stock price has been very frustrating to all of us,” he said. Apple’s stock dipped below $400 a share just a few days ago. “The key to Apple’s strength is creating innovative products, and that is always in Apple’s control,” he continued.
Some numbers in Apple’s earnings release stood out. In the outlook section, Apple said that it expects flat revenue for Q3 2013 and a decrease in gross margins to 36-37 percent. It would mean that Apple could experience a profit decrease — a downturn was unimaginable just a couple of years ago.
Apple’s estimates are generally very conservative but the company was spot on for gross margins this time around. Tim Cook hinted at “great new products” launching in the fall. Profit could certainly make a come back for Q4 2013.