Analyst: don't write-off Apple

Apple Sign

Professor Loizos Heracleous warns against rash reactions to disappointing turnout.

Apple's results may not have been what the company wanted but investors should avoid acting hastily, explains analyst Professor Loizos Heracleous.

Despite the recent results which saw Apple's market value flop down by $50bn, the Mac and iPhone maker is still strong, he argues.

Having conducted a study on the organisation for a paper published in Organizational Dynamics, Professor Loizos says that the results are a blip on the radar and not the first signs of deepening fault lines as speculated by other analysts.

“Before we write Apple off with premature assessments, we need to appreciate that its so-called disappointing performance is still extraordinary by many measures, and that it has the capabilities to keep winning in its markets, which it may yet redefine with more blockbuster products," explained Warwick Business School's Professor of Strategy.

Apple reportedly sold 47.8 million iPhones during the Christmas period, falling short of the forecast average of around 50 million, while revenue grew 18 per cent year-on-year to $54.5bn, compared to the $54.9bn forecast.

Professor Loizos said that people were jumping to conclusions if they thought that this marked the beginning of the end for Apple, stressing that the company sat on a large enough nest egg to buy out any competitors and acquire new technologies.

“Stock markets react, and sometimes overreact, immediately, but what matters is the big picture and Apple seems to be on a solid footing by that measure," he concluded.

image: © Daniel Dudek-Corrigan

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