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Tuesday, July 31, 2012

Apple Inc.(NASDAQ:AAPL) and Twitter Negotiations have supposedly ended a year back


The speculation about Apple Inc.(NASDAQ:AAPL) investing in Twitter has been proved to be exactly that – nothing but a mere speculation! These companies were in negotiations about a year back to enter into an agreement, but it was called off because both sides could not reach a mutual solution.

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The New York Times had published a report on 27th July stating that Apple was currently negotiating a deal with Twitter for hundreds of millions of dollars. Had the deal gone through, Twitter’s value would have shot up to 10 billion! Representatives from both sides have maintained silence over this matter.

Twitter has apparently declared that it will generate sales of 1 billion US dollars in 2014, despite being smaller in size as compared to its rivals, Google and Facebook. According to researchers at EMarketer, Twitter advertising sales, which constitute a major portion of its revenue, will go up to 540 million in 2014! Marketing campaigns are being launched in full frenzy so that marketers can draw up huge advertising budgets for Twitter.

Apple has recently launched Mountain Lion, a high-tech operating system for Mac-based notebooks and desktops. The Twitter app has been incorporated in such a way that it makes sharing extremely easy and convenient for users. Apple has shown decline in sales as per the predictions of analysts, the only time since 2003, because customers were waiting to purchase the new model, which will be released later in the year.

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Total income went up by 21% till 8.82 billion, which puts the share price at 9.32 dollars per share. The period considered for accurate measurement of the income, ended on the 30th of June. On July 24, Apple made a statement citing a rise in sales by 23% coming to 35 billion. According to analysts, the revenue would come to 37.2 billion and a gain of 10.37 dollars a share. The company sales rose at a sluggish pace since 2009, although this company has outgrown and sometimes overshadowed its peers.

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