Late Tuesday, the shares of Apple Inc.(NASDAQ:AAPL) lost $28 billion of market cap after the iPhone maker disappointed investors and analysts by reporting third quarter earnings that failed to meet their target. However, one should note that results were higher than the company’s own estimates in made in April. The company posted net income of $8.8 billion, or $9.32 per share, up 21% year over year, but over 10% lower from analysts’ estimates of $10.37 a share. Revenue also grew 23% year over year to $35 billion, missed by $3 billion from what analysts were estimating.
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If that’s not enough, investors also spooked by the company’s iPhone numbers, where it sold 26 million, compared to analysts’ target of 29 million. Well, there were high expectations that the company could be hurt due to an expected launch of new version of iPhone 5, which triggered buyers to postpone their buying at least now. Well, this could be temporarily effect and the company may come back with strong demand once it launches new version of iPhone. There is no doubt that the company has been placed on the top spot when it comes to tech innovation as the company has changed the entire mobile market by launching shocking innovation in the Smartphone industry. As a result, several mobile manufactures such as Nokia Corporation (ADR)(NYSE:NOK) and Research In Motion Limited (USA)(NASDAQ:RIMM) took a hard beat and those companies have been struggling to gain their lost glories.
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If we compare the return provided by AAPL with other players in the Smartphone industry, the company is well ahead. Shares of APPL have jumped 53% in the past one year and 49% year to date through July 24, 2012. While, shares of tumbled to new decade low and down 70% in the past one year and 63% year to date and shares of Research In Motion Limited (USA)(NASDAQ:RIMM) has fallen 75% in the past one year and 52% year to date.
|Performance of RIMM, AAPL, NOK in the past one year|