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Is This Apple's Hewlett-Packard Moment?

Apple's (NASDAQ: AAPL  ) earnings tonight have left the company down 10% in after-hours trading. It doesn't require being a stock market genius to see that investors were disappointed with the company's results. 

Yet looking across the past quarter, one product group is the most striking: the Mac. The iPhone saw 28% more sales than the fourth quarter of last year, while the iPad achieved 22% revenue growth in that time. Those numbers stand in stark contrast to Apple's Mac lin-up, which fell a surprising 16% from a year ago. To put that in perspective, that's a steeper decline than the iPod, a product line that has long been declining. 

In the following video, Eric Bleeker and Andrew Tonner look at Apple's weak Mac sales and discuss whether the company is succumbing to the same PC challenges that have been affecting companies such as Hewlett-Packard. Previously, Apple had managed to dramatically outperform the broader PC market, but it appears the disruption it's caused in PCs is finally catching up with the company. That could cause some near-term adjustments for how Apple investors think about the company, as one Mac creates the same profit as about three iPads, but Eric also warns that if Apple's struggling in PCs, its just another warning sign how challenged the broader PC industry and its players -- such as HP, Intel, and Microsoft -- will be in the year ahead. To see their full thoughts, watch the video. 

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. Eric is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and, more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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  • Report this Comment On January 23, 2013, at 9:24 PM, JJStripes wrote:

    Dear Apple,

    It used to be okay for you to charge a monopoly price for your products, but now that everyone else makes stuff that is as good or better you can't keep it up. I know you have brainwashed a lot of people into thinking you are doing them a favor by overcharging and under-delivering, but some of these nice folks are figuring out your scheme, and they understand that they own their music, and it doesn't have to live in itunes. They figured out that you aren't being nice by charging them $30 for a 50 cent adapter, and by taking away the best maps application out there. These people have had enough of your BS and are moving on. I know it hurts that your share price has plummeted the last few months, and it is especially painful to lose another 10% after hours today due to poor earnings, but it serves you right for being such a crook.

    GO RIM! BBM is back January 30th!

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