April 25, 2009 by James Oliver
Apple’s first quarter profits have far exceeded the gloomy predictions of many on Wall Street. The computer and software maker has not only defied a sluggish economy with the profits, but also managed to drive its share price up by three percent despite making more cautious noises about this quarter’s performance.
The market has failed to take notice of these predictions largely because Apple is famed for managing expectations with conservative predictions. However, in addition to this there is a real market buzz about the performance of the company, coming as it does in the middle of a huge amount of turbulence for the company.
Not only are they attempting to sell luxury goods in the biggest time of economic hardship since the depression, they are dealing with an absent CEO, persistent rumours about their new found susceptibility to viruses and a very aggressive Microsoft marketing strategy, that delights in highlighting the company’s occasionally below par value for money.
Before you remortgage the house and buy up Apple stock however, it might be an idea to wait three months and see what happens. All the factors just outlined pose very real threats to any company and it could well be that the effects of those have yet to be felt.
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