Here's two charts from Apple's earnings that immediately jump out.
The company's EPS growth of 20% was at its lowest in the last ten quarters. The revenue growth rate was 23%, also pretty weak compared to recent quarters. What's worse is that Apple's guidance suggests the growth is going to be lower in September.
When will the big, eye-popping growth return to Apple? Maybe never. Last holiday quarter Apple obliterated expectations with $46 billion in revenue. To match last quarter's (relatively weak) growth, Apple has to do $57 billion in sales this holiday. That's ahead of analyst estimates by a few billion.
It's possible Apple hits that insane number. The new iPhone, and a rumored iPad Mini could drive Apple there. But what about the next quarter? And the quarter after that? The Apple television? Some other miracle product?
We've learned not to doubt Apple as it's pulled off incredible earnings growth. But, it sure looks like the law of large numbers is about to catch up to the company. Growth rates are going to fall from the astronomical rates we've seen.
Considering the fact that Apple's stock has been arguably undervalued as it delivered huge growth, it will be interesting to see how investors react if Apple's growth comes back to Earth.
