Reports of Apple’s Death, Exaggerated

When a skyrocket starts to falter while in flight, that’s news, I suppose. Apple’s seemingly unstoppable run got snagged last Fall when its stock price dropped over 40%. Theories flew about wildly. But what company could keep up the rate of success that Apple has had in recent years?

The following article, a recap of Apple’s recent developers conference, presents some rock-solid numbers:

[Apple] continues to dominate mobile and personal computing, capturing 57 percent of global profits in the smartphone industry—to the tune of $7.1 billion—in the first quarter, according to research firm Strategy Analytics. It commands nearly 40 percent of all tablet profits, more than the next four competitors combined, according to IDC. Mobile-browser company Opera Software (OPERA) says iOS users are responsible for nearly 45 percent of Web traffic on mobile devices, while the Android devices that outnumber them account for 31 percent.

Apple is still churning out profits, and its cash reserve is the stuff of legend. But are they vulnerable? Over 70% of their revenue comes from just two product lines, iPhones and iPads. Could an able competitor with a breakthrough product send Apple into a tailspin? Probably not, if Apple has something up its sleeve that becomes the next industry-changing hit. Come to think of it, that’s probably Wall Street’s beef — Apple hasn’t “changed the world” in over two years now. Something must be wrong in Cupertino, right?

Read full article: