Sunday, July 22, 2012

Here’s Why Apple’s Growth Is Slowing



As iPhone fans await the release of a new model, they are delaying purchases and may cause Apple Inc., the world’s largest company by market value, to post its slowest sales and profit growth in more than two years, Bloomberg writes.

With a redesigned model probably arriving by October, analysts estimate that sales of iPhones -- Apple’s biggest source of revenue -- slid in the fiscal third quarter from prior periods. While analysts predict that the next iPhone will be the best-selling smartphone yet from Cupertino, California-based Apple, the purchasing delays will probably weigh down results until the device hits stores.

A similar slowdown occurred ahead of last year’s iPhone 4S release in October, causing Apple’s shares to slide when the company reported profit that fell short of analysts’ estimates for the first time since 2003....

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