Apple numbers show present success

Several factors could doom company

Apple has been able to prove this week that they are the biggest and best company on the face of the Planet Earth. On Tuesday of this week, CEO Tim Cook revealed that the company was able to rake in a profit of $18 billion, which is the world record for any company of any type in the history of businesses, regardless of what business that they are. That means oil and gas and energy companies. A huge accomplishment indeed. With that being said, there are still several things that could bring bad things to the future of Apple and the company should be aware of them to insure the long term success and sustainability of the company.

One thing that Apple needs to look at is making sure that the price of their stock does not skyrocket. At the current time, Apple has a relatively low P/E ratio considering the recent high earnings. Most analysts are predicting that Apple should grow even more over the next five years which means that the price of the stock could skyrocket which means their products could be priced so high that the average consumer would not be able to buy their wares.

iPhones were the reason of the 2014 fourth quarter record numbers but at the same time they have been increasing in price. The Apple Watch is set to come on to the market in April and analysts say that too will help increase Apple revenues. The watch is the biggest item to come on to the market for Apple since the iPad in 2010. The thing is that the iPad fad has started to quell. It is being reported that iPad sales could fall as much as 8 percent over the course of 2015. Apple needs to make sure that does not happen to the Apple Watch.

In order for Apple to be apple to keep their recent record making sales in tact, the main thing that they are going to have to do is innovate. They are going to have to bring a product to the consumer market that will be a game changer. Apple is banking on the Apple Watch to do that. 2015 will certainly be a year that could be a measuring card for the long term success of Apple.

Source: Forbes