Investors in Apple Inc. (NASDAQ:AAPL) will have noticed that over the past week, shares have dipped substantially, falling below the psychologically-important threshold of $1 trillion as sales of iPhones appear to have many reeling with respect to the company’s long-term outlook for its cash cow product.
Specifically, concerns have arisen that Apple may have hit "peak iPhone," with some analysts noting that companies tend to stop reporting numbers for segments they see at risk of potentially declining over time. While Apple did publish results for its latest iPhone release (which were essentially flat over last year), the company also announced it would be foregoing publishing iPhone-specific results moving forward, a move which was met with disdain by the stock market in recent trading days.
Apple appears to be following a similar playbook to other large blue-chip companies which have made the move from reporting out on business line specifics on a quarterly basis, in part due to the fact that innovation and growth take time and investment – factors which are generally not viewed well from a quarterly perspective.
While iPhone sales may have peaked, I believe the future remains bright for Apple, a company with the talent and long-term vision necessary to tackle new product categories and dominate due to the company’s strong product ecosystem and brand loyal customers who will continue to drive the company forward and shell out ever-higher prices for the company’s latest and greatest products.
Invest wisely, my friends.
