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Ignore Worries About Apple, Inc.'s iPhone Sales

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Some investors are concerned Apple 's iPhone sales may be lower than the year-ago quarter when the company reports results for the final quarter of the calendar year, or its first fiscal quarter of 2016. With iPhones accounting for about 63% of revenue, a decline in iPhone sales would make revenue growth difficult, if not impossible. But as an Apple investor myself, I'm not concerned about a year-over-year decline.

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AAPL Shares Outstanding data by YCharts .

Furthermore, investors should keep in mind that this is just a single quarter. Each quarter should be put into perspective with a broader context and viewed as a single piece of a larger puzzle -- especially quarters for a company like Apple. In the near term, Apple's results are expected to be volatile. As a product company with an extremely focused lineup, there are going to be years where growth is difficult.

And for those who insist on taking a closer look, the best data investors have at the moment is the company's guidance, which suggests management still expects growth. So, all curious investors can do, for now, is wait.

At the end of the day, even if a slight decline in Apple's revenue begins to materialize in the near term, the stock's valuation, the company's pricing power, management's excellent capital stewardship, and Apple's track record of attracting and retaining a loyal customer base should soothe any worries for investors with the only sensible time horizon: the long term.

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The article Ignore Worries About Apple, Inc.'s iPhone Sales originally appeared on Fool.com.

Daniel Sparks owns shares of Apple. The Motley Fool owns shares of and recommends Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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