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Apple's World Domination Still On Track

21 April 2012 in Trading Ideas

It’s increasingly unacceptable to be staggered by the financial performance put forth by Apple (AAPL) every three months.

The company is such an outlier of capitalism at this point that the time has come to stop rubbing our eyes at what would normally be impossible-to-believe factoids: the idea that Apple’s quarterly profit announced April 24 is more than Google’s (GOOG) revenue, the notion that Apple’s cash on hand is now more than the market cap of all but 20 public companies, or the projection that a five-year-old iPhone business will generate a $100 billion of revenue this year, a total equivalent to the expected public market value of Facebook.

What is an otherwise dispassionate investor to make of a company that, at this stage of its life, can still nearly double its quarterly profit and can defend anything that even comes close to a whiff of weakness?

Weak iPad sales, you say? Only 11.8 million of them sold last quarter? Yes, you’re correct, Apple would admit. But note the 132% jump in the device’s revenue during a quarter when the company was transitioning to a new model.

Or the fact that it has sold 67 million of them in two years, something it took 24 years to do with the Mac computer.

Still, for investors it’s worth a look at a grey cloud or two.  Many analysts continue to see a bumpy road for the company’s stock, which despite its bounce on Wednesday is still off its highs for the year, as smartphone competitors aim to introduce new phones ahead of an expected latest, greatest iPhone this fall.

How do you think Apple’s latest earningst report changes its prospects – or those of its rivals?