Apple's Quarterly Profit Projected to Shrink for the First Time in 10 Years
Apple's quarterly profit is projected to shrink for the first time in 10 years, according to Bloomberg.
Fourteen analysts have reduced their estimates for Apple in the past four weeks, as shares in the world’s most valuable technology company continue their slide from a September record high. Competition from Samsung Electronics Co. is also weighing on the stock, and pressure is mounting for Chief Executive Officer Tim Cook to introduce hit products to reignite sales.
Analyst estimates compiled by Bloomberg predict that Apple will see a reduction of fiscal second quarter net income by 18% to $9.53 billion or $10.02 a share. Revenue is projected to increase 8% to $42.4 billion which for Apple is its slowest growth rate since 2009.
It's suggested that Apple could increase its dividend or boost share buybacks to appease investors. Bloomberg estimates a 17% increase in its current quarterly dividend to about $3.10 a share.
Apple will announce earnings tomorrow.