Yahoo Finance Apple Quarterly Profits Tipped To Tumble
It is widely predicted that Apple (NasdaqGS: AAPL - news) will report its first fall in profits for a decade later - a move that could further threaten its market value.
Analysts expect a tumble of up to 18% in earnings when the company delivers its second quarter trading statement on Tuesday, although revenues are expected to rise.
It is rumoured that higher component prices and the lower costs of some of its products will have eaten into its profit margins.
Stronger competition in the smartphone and tablet markets is also expected to be reflected in the statement.
Weaker demand - largely because of the competition issue - has been blamed for the 40% drop in Apple's stock value since September last year.
Apple shares fell below the $400 (£262) mark last week for the first time since December 2011.
A surprise warning about disappointing revenue at Cirrus Logic (NasdaqGS: CRUS - news) , which makes audio chips for the iPhone and iPad, sparked the sell-off.
The US firm's forecast added to market speculation that sales of the iPhone - which make up more than half of Apple's revenue - are slowing more quickly than expected as Samsung and other rivals flood the market with cheaper devices.
A cloud was lifted from the iPhone on Monday night when the US International Trade Commission threw out a Motorola Mobility patent claim that threatened to block the import of some iPhone models into the US.
The commission dismissed a complaint by the Google (NasdaqGS: GOOG - news) -owned firm which accused Apple of infringing technology that makes touch screens ignore fingers when people are holding smartphones to their ears for calls.
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