Concerns regarding Apple Inc.'s lack of major product since the passing of CEO Steve Jobs increased. Worries regarding the fall on the costs of its smartphones helped push its shares down 40% from its September 2012 record through July 25. Analysts said that Apple must update its devices and look for new ways to allow its merchandises to return to growth.
CEO Tim Cook said that he wanted to earn more from the services that the company currently provides. He also wanted to generate more from applications and its retail network of around 408 stores.
"Expectations of Apple's growth have been reset to reasonable levels," Capital Advisors' president, Keith Goddard said. Capital Advisors presently owns 30,831 of Apple's shares. "It's a good sign that the company can navigate through a period of slow innovation, and not disappoint the Street anymore."
Analysts stated that Apple could grow faster by expanding its retail network and increasing its efforts to sell to emerging markets like India. It would also grow by boosting the amount of service and softwares that its patrons could purchase.
"They don't need to have half of the market. They need to be a highly profitable provider with 25 percent to 30 percent market share," Goddard added. "Apple should be the Cadillac of smartphones."
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