What to Expect From Apple in the Second Half of 2012http://www.fool.com/investing/general/2012/07/28/what-to-expect-from-apple-in-the-second-half-of-20.aspx Tamara Rutter
July 28, 2012
Apple (Nasdaq: AAPL ) has endured a wild ride so far this year. By now you're probably aware that the tech giant missed analyst estimates on Tuesday, when it reported third-quarter earnings. Shares tumbled more than 5% on the news. However traumatic this may seem for current shareholders (myself included), investors should consider the handful of key growth catalysts in this name before joining the bears in a rush to sell.
Tracking where a company has been can offer valuable insights into the future. Now that we're midway through fiscal 2012, let's take a closer look at where the Mac maker was six months ago and where it's headed in the second half of the year.
Keep 'em guessing
Apple is undoubtedly on a tear this year, despite its recent earnings disappointment, perhaps because many bulls understand that the tech titan is in the process of a product transition as it readies for the upcoming debut of its iPhone 5, as well as a smaller and cheaper iPad device. Of course, there's also the rumored Apple TV on the horizon. With so much to look forward to in the coming months, it's hard for me to justify being disappointed over one less-than-stellar quarter.
Today, iPhone sales generate a significant portion of Apple's revenue. Yet it's more important than ever that the company's next-generation device live up to the hype. Competition in the space is nothing to take lightly. Consider how quickly Research In Motion (Nasdaq: RIMM ) went from being the leader in smartphones to an outdated and technical mess.
In fact, the BlackBerry maker is at the bottom of the barrel in terms of market share. Even mobile-handset maker Nokia (NYSE: NOK ) looks to have a better shot at a recovery than RIM. In the second quarter, the Finnish company sold more than 10 million smartphones. Meanwhile, Samsung took home the gold with 50.2 million in the three-month period, followed by Apple's 26 million.
Not to worry. There's plenty of growth left in Apple's future, despite Samsung's current lead in the smartphone space.
Innovative product lineup
The most powerful companies in the world all share in their ability to keep people guessing. This is a