Boston, MA 01/30/2014 (wallstreetpr) – Could this be the demise of Apple Inc. (NADAQ:AAPL) in terms of its iPhones sales? This is the biggest question lingering with many analysts and investors especially on the foreseeable future of Apple. In its Q1 results Apple recorded an increase in its iPhones as compared to the previous year although growth has vanished indicating a point of saturation in terms of growth. Apples North America business growth has essentially shrank with no substantial marginal growth. It is not only Apple who are experiencing this conditions in the market, but it is also heavily rumored that its fierce rival Samsung has also hit a brick wall in terms of growth. This is obviously a big problem not only for the two mega company’s but also for their chief suppliers Qualcomm which provides them with most of the hardware’s.
Apple Inc. (NADAQ:AAPL)’ iPhones sales for Q1 F2014 stood at a figure of 51 million falling short of analyst’s expectation. Analysts had projected iPhone sales of 55million from the big money making Phone Company. This was only a 6.7% increase as compared to the previous financial year. Apple North America falling business in terms of revenue collection has been blamed entirely on the company’s misjudgment of the fact that most of the people have iPhone devices and are not in a hurry for any upgrade.
Failure to meet analyst’s expectation is not the only problem at the moment but its revenue growth has also started to slow down, growing at a rate of less than 6%. As a result of the bad news being announced, Apple Inc. (NADAQ:AAPL)’s stock fell by a high of 9% to just the $500 mark. In contrast to the bad results in the market the company’s quarter was a bit stronger than anticipated with its gross margin standing at 37.9% in contrast to analyst’s guidance of a range of 36.5%-37.5%.
