Apple Disappoints, Analysts Worry

This year alone, tech giant has missed its targets twice. The latest data shows consumers are not buying iPhones as much because they are waiting for the next-generation iPhone.

Rumors are saying iPhone 5 will be released this autumn although Apple has yet to confirm.

Now industry observers are saying Apple is losing its aura of invicibility.

If such is the case, then there is reason for Apple chief executive officer Tim Cook to worry. What used to the company’s biggest success, the iPhone has now become its biggest risk.

According to OakBrook Investments head trader Giri Cherukuri, the tech giant has become more vulnerable and some chinks in its armor are showing. Cherukuri said that its main problem is its size and success.

The sentiment is echoed by Shaw Wu, an analyst from Sterne Agee. The analyst said Apple has become so pervasive that it’s much harder to sustain it.

Last Tuesday, Cook called a meeting with Apple investors to announce the miss on its targets. According to sources, the Apple CEEO assessed how the world economy has made a dramatic impact on iPhone sales.

Cook explained that the iPhone has been affected by the economic slowdown. He, however, was quick to dissipate concerns, saying there is nothing to worry.

Apple’s smartphone is a highly cyclical product. While buyers come in droves to purchase the latest models, they can also hold off buying until the latest model comes.

And the more rumors swirl about iPhone 5, the more people anticipate its release. In the process, the more likely they are to hold off purchases.