It isn’t easy getting older.
Apple’s strong Q2 2014 performance, capped by a 7-for-1 stock split, an 8 per cent dividend boost and a US$30 billion increase in its stock buyback plan, was more than enough to keep investors happy as the company’s shares soared by 8 per cent in after-hours trading. But weak iPad sales and an ongoing mystery over next-generation product announcements continue to underscore the company’s sometimes-painful transition from fast-growth innovator to a more value-oriented legacy company. Financial gymnastics can only mask so much.
Initial investor response notwithstanding, Apple’s middle-aged growing pains are far from trivial. Despite earning $11.62 per share, 15 per cent more than during the year-ago period, softening iPad sales – 16.35 million compared to 19.4 million in Q2 2013 and well below analyst consensus of 19.2 million – threaten to undermine the company’s position as the consumer electronics market’s Pied Piper. Apple’s current products won’t sustainRead More »from Fading iPad sales mark the end of Apple’s big bang era