Apple Expected To See Greater Profits Ahead
August 26, 2010
While Apple definitely hasn't suffered in the current economy, it appears that the future is even brighter for what was an underdog tech company less than 10 years ago.
This quarter, Apple is dealing with several issues that are cramping their sales. Both the iPad and black iPhone 4 have lead times and the white iPhone 4 is still mysteriously missing in action. It is highly likely that supply will catch up to demand in the next two quarters, especially if the white iPhone 4 becomes available. Additionally, Apple is still seeing the after-effects of Antennagate and the free case program which ceases at the end of this quarter. Apple announced previously that the free case program would cost them about $175 million, all of which affects the current quarter.
As reported on AppleInsider.com, analyst Brian Marshall predicts Apple's gross margins to improve greatly in the next two quarters. He also says that unlike other manufacturers, the iPad is not cannibalizing sales of Apple's Mac lines which should see a strong back-to-school sales season. The fourth quarter could also see a boost from a refreshed iPod line, as well as the full roll-out of the iAd platform. While analyst Brian Marshall believes it won't appear until 2013, rumors have abounded that Apple will be releasing the iTV in the third quarter of 2010 which could cause another sales boom. The first quarter of 2011 may also see a huge boost if the iPhone does, in fact, launch on Verizon. Another big boost for the first quarter of 2011 is the likely release of a 2nd-generation iPad.
Was Antennagate blown out of proportion? Is the potential release of the Verizon iPhone, 2nd-generation iPad and iTV product lines going to accelerate Apple's sales and market dominance? Let us know your thoughts in the comment box below.
