Apple Earnings: Is a New Product Coming? *UPDATED*

Jacob Harper |

Apple Inc. (AAPL) announces third quarter earnings after the bell July 23 (Apple’s fiscal year ends in September) and of pertinent interest to investors, whether there is any concrete news about new Apple products. While people will pay very close attention the numbers, and especially the number of iPads and iPhones sold, what stockholders will be most keenly interested in is the release date of the iPhone 6, the iWatch, or really any other major product that could revitalize the beleaguered tech giant.

CEO Tim Cook has long been promising "incredible things," like Apple TV or wearable tech, though there hasn't been any hard news confirming either. The release date for the newest iPhone as well is still a mystery. But whatever happens, the Cupertino, Ca.-based tech company needs a new product to jumpstart their sagging stock.

Apple debuted the iPhone 5 (the sixth generation iPhone) on Sept. 12, 2012. With its launch, Apple’s stock skyrocketed, moving as high as $702.10 a share on September 19, 2012. But then, after the buzz started to wane, and word went around that sales were 50 percent of what the company hoped for, the stock began its precipitous decline.

On Oct. 23, 2012 the company released the newest iteration of the iPad tablet, which was able to provide a bit of a rebound for the stock. But general sentiment was that Apple’s newest products weren’t necessarily game changers. And it started to look like with the new iPhones and iPads if an old one was working fine, there weren’t enough bells and whistles to warrant shelling out for the new ones.

The market for iPhones and iPads, it would seem, was saturated. As well, the market for high-end tech seems to be waning as cheaper smartphones flood the market, with some analysts predicting Apple’s share of the market might dip into single digits. In early 2012, they held 23 percent of the market.

Analysts at Thomson Reuters expect iPhone sales of 26 million and iPad sales of 18.3 million. The same quarter last year iPad sales were 17 million, and iPhone sales were 26 million.

Apple is famously secretive about product development, so it’s entirely unclear what product Cook will reveal. Some analysts are bullish on Apple’s chances to shake up the tech market once again. Apple’s stock has lost almost 40 percent of its value since last September. Piper Jaffray analyst Gene Munster insisted that “the trends will reverse as Apple introduces new products."

For investors hopeful of Apple's chances, it might be better to think of the announcement less as an earnings anmnouncement, which probably won't be incredibly rosy, and more as a possible trailer for the new Apple product the next quarter over - whatever it might be.

Prior to the earnings announcement, Apple's stock is at $423.23 a share.

*UPDATE*

Apple beat earnings expectations, and also beat sales projections for the iPhone. While it should be noted that the price of iPhones dropped to $580 from $624 a year ago, the sales numbers are very still good news for the company. The company sold 31.2 million iPhones, or 5.2 million more than anticipated. However, the company sold only 14.2 million iPads. They were expected to sell over 4 million more than that.

Apple reported net income of $6.9 billion, or $7.42 per share, versus the $8.8 billion, or $9.32 per share, from the same period a year ago. Revenue for the quarter was $35.3 billion, as compared to $35.0 billion from the previous year. Analysts were expecting a profit of $7.32 per share on revenues of $35.01 billion.

There has been no indication of when any new products will drop, with only hints that "amazing" things are to come.

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Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 112.88 0.17 0.15 29,866,507
IZEA IZEA Inc. 5.60 -0.16 -2.77 8,500

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