Apple’s Identity Crisis: Is It a Hardware Company or a Software Firm?

As Apple prepares to report what analysts project may be the company's first year-over-year quarterly earnings decline in a decade on Tuesday, it is also grappling with jittery investors and a recent share-price plunge that has wiped about $280 billion off its market capitalization since its stock reached a high of $702.10 last September.

Much of the investor nervousness is rooted in how Wall Street is treating and valuing the Cupertino, Calif., company as a traditional hardware maker. One camp of analysts and some investors said there is strong evidence that Apple should be viewed in a different light: as a software-hardware hybrid.

The distinction matters. If it continues to be seen as a hardware business, Apple's streak—driven by products like the iPhone and iPad—could run out….

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