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iEarnings up 23% and Still Manages to Disappoint Much of the Market

When’s the last time you or any company grew by 23% and you didn’t want to pop open a bottle of Champagne? Such is the luck of Apple.

Investors love Apple products, but are wary of a company relying so heavily on two menu items.

Apple brought home $35 billion of bacon during the 3rd quarter and investors are clamoring for more.

How can this be? Here’s why. 73% of Apple’s revenues come from two products – the iPad and the iPhone. Imagine if 73% of McDonald’s income came from the Big Mac and the cheeseburger. McD would be falling even harder than it has in recent months. Investors love Apple products, but are wary of a company relying so heavily on two menu items.

Apple shipped a stunning 26 million iPhones – a 28% year over year increase, but a 26% sequential decline. In simple English, that means the iPhone is peaking like a Pink Floyd song on the Billboard charts. It’s hit the top and will very slowly go down while staying in the top ten for years to come. Any other company would dream of this situation, but not Apple. Apple is like the student who gets a 99 on his final exam and his parents ask, “Why not a 100?”

Analysts say that Apple’s profit margins will continue to drop – the average price of both iProducts went down by 4% – as Apple pushes harder than ever to sell, sell, sell. Like our readers, we’re waiting on the new iPhone and iPad before we’re willing to place our bets on Apple.

OCA News Editor

Keeping up with the latest trends in entertainment, Matt Holden brings celeb news to the front page of OCA. Matt loves numbers games and researches the highest paying lottery draws to play.

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