Two stalwarts of Silicon Valley,
) and Yahoo (
), will reveal to the world their second-quarter profits on Tuesday
evening after trading finishes. Most eyes will be on Apple, which
has sent out confusing signals.
On the one hand, the company appears to be moving from strength to
strength, with record-breaking sales of its iPad tablet computer
and its new iPhone. However, concerns about a design flaw that can
attenuate signal strength in the iPhone 4 have stirred up
controversy, with the company's faithful accusing it of
carelessness and its rivals crowing at the misstep of the formerly
That Apple's reputation for sterling design and simplicity have
suffered is undeniable. The company is now as firmly associated
with flaky hardware as it is with intuitive interfaces - in the
minds of the digerati, at least.
Still, all the bad PR in the world doesn't appear to have put that
big a dent in massive hardware sales. The company is expected to
post profits of $3.07 per share.
On the other side of the aisle, Yahoo is trying to recover from
stagnant growth in search advertising and heavy competition from
sector leader Google (
). With cost-cutting measures and strategic partnerships with
Microsoft and its Bing search engine, relatively low projected
earnings of 14 cents per share mean that the Sunnyvale-based firm
could end up outperforming Steve Jobs' company.