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A third and diminished challenge is Apple’s older iPod item is dropping off in specials. Apple freely confessed that iPod sales were down 7% from last quarter. The actual reason being a trend that has continued to evolve over several quarters however. They are likely cannibalizing iPod sales at a time new iPhones and iphones. Nevertheless, the newer products extra than make up in revenue for this lost revenue on the older ones. Apple has a philosophy of simply developing the best new products – regardless if this competes with older existing appliances. This is where Apple is a little distinct from many other technology specialists. You certainly cannot argue using revenue physiques.

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Investors may need to keep the faith on Apple throughout the second and third quarters of 2011 and continue holding in order to Apple carries several. This is when Apple characteristically dips in revenue because there aren’t any holiday sales drivers. The Bears to produce a lot out associated with the drop in revenue. The same as they did in the year 2010. The Bears attributed, incorrectly, that the 2010-second quarter fall off in profits was all due to Apple "cannibalizing" their own iPod advertising. This bearish argument even prevailed in the third-quarter, once the third-quarter was very high for a third-quarter. Finally, the bears will attribute the disappear in revenue to Apple falling to pieces without Steve Function. Do not worry about the revenue slumps. Cash per sale . and third quarters slumps for Apple are seasonally in disposition.

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