Apple’s Earnings Miss Means More Mobile Opportunity
I broke into the technology journalism field as a business reporter after spending a year in the mainstream media. I remember Wall Street and analysts being fickle back then about a penny or two per-share discrepancies because it would affect the stock price for the immediate future.
Well, 20-plus years later and nothing really has changed. Apple (NASDAQ: AAPL) this week reported $35 billion in revenue and $9.32 earnings per share for its third fiscal quarter. This was slightly off from analysts’ expectations of $37 billion and $10.40 earnings per share, but it was still the company’s third-best quarter in its history. However, Apple’s stock traded 5 percent lower after the announcement. For perspective, Apple’s two better quarters were the two previous periods this year. What a financial year for the company, indeed.
And what is the consensus as to why the “dramatic” shortfall? New product expectations, specifically the iPhone 5, are delaying current sales.
Folks, I’ve said it before. The mobile revolution is not going to slow down anytime soon. During one of the worst recessions in our country’s history people have no problem dishing out $600, $700 or even $800 for new tablets and $200 to $400 for new smartphones, plus the accompanying data plans. And as the application market continues to develop, more business uses will undoubtedly come.
And this is permeating across all industries. No exceptions.
In fact, I was talking recently with Dan Skiles, executive vice president of Shareholders Service Group, a firm with dedicated services for registered investment advisors, about this very issue. We did a webcast together on mobile growth in the investment advisory market. Skiles said most advisors have embraced mobile technology to communicate with their customers and those that haven’t are at a competitive disadvantage. Further, the main concerns of those that are not using mobile devices center on network integration issues and not so much security or compliance concerns.
Take note, solution providers serving the financial, legal and insurance industries: This is your wheelhouse. Integrating mobile devices into an organization’s network to access company systems and data should be one of your top skillsets.
This is just a microcosm of what is going across all businesses. Mobile device integration is and will continue to be one of the main spend areas from SMBs to large corporations for the foreseeable future. So while Apple’s third quarter shortfall did not sit well with investors, it should sit just fine with solution providers.
Knock em alive.