Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL): A Growing Company In Transition?

With its towering market capitalization of $432.44 billion, Apple Inc. (NASDAQ:AAPL) remains one of the most widely-held investments in the market today. Regardless of whether you’re a populist investor of the savvy tech giant or not, the headlines that the company has been making over the past few months have been hard to miss. Yet for the moment, Apple Inc. (NASDAQ:AAPL) also carries a conflicting sentiment for most investors who are now forced to view the company through two distinct lenses.Apple Inc. (NASDAQ:AAPL)

A declining company that has lost its way

As a leader in technological innovation, Apple Inc. (NASDAQ:AAPL) has done little to impress the markets when it comes to the latest versions of its most popular products. The iPhone 5 and the iPad Mini were far from the raving successes that once set the bar high for the company. The loss of Steve Jobs also appeared to have made a strong statement in regards to the lack of innovation to follow. It was as if the captain of the ship himself had been flung overboard.

The introduction of changed policies appeared to confirm this concept. When Apple Inc. (NASDAQ:AAPL) reversed a 17-year hiatus from issuing dividends, it appeared as if the order itself defied how the company carried itself. After all, it was Steve Jobs who always believed that the company could make much better use of its cash than merely handing it back to investors. Had the company run dry on innovation?

Since marking an all-time high around $700 per share in September 2012, Apple Inc. (NASDAQ:AAPL) fell nearly 45% in a steady decline. While coming off of a historic run leading higher, the fact remained that Apple’s growth appeared to be waning in the background. The company ultimately missed analyst expectations two quarters in a row thereby highlighting a trend that was already beginning to take shape. Seen in the graphic below, Apple’s growth appeared to be failing.

AAPLRevenue Quarterly YoY Growth data by YCharts

A growing company in transition

But for all the clamor of a company in decline, an opposing view also suggests that Apple Inc. (NASDAQ:AAPL) has merely shifted gears into another phase of corporate development. After all, it was always unrealistic to believe that a company could keep the pedal to the metal when it’s grown to be the size that Apple is now. Likewise, the general trend of the company’s revenue and earnings have continued in the right direction as seen in the graphic below. One could argue that the latest dips were mere realignments back towards the area of support Apple has traditionally seen. With Tim Cook promising more “surprises” and “product categories” to come in the near future, it might very well be that Apple’s trend of rising revenue and earnings will continue to hold.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.