AAPL blamed their fall in earnings on slowing demand in Western Europe and sales of the iPhone 4 and 4S in anticipation for the new model iPhone 5 due to be released later this fall or winter. Although Apple’s Q3 earnings were lower than expectations, they are still impressive. They reported an increase of 23% in sales from this time last year to $35 billion, about $2 billion less than analysts expectations. Quarterly net income gained 21% over the year to $8.8 billion for an EPS of $9.32. Analysts were expecting an EPS of $10.37. In my opinion AAPL is a great buy when it reaches bottoms and that the release of the iPhone 5 will make record sales and accelerate growth.
David Cornes holds a degree in economics from the University of Montana.