Google Inc (GOOG), Apple Inc. (AAPL): A Quick Look at the iPhone 5C

With the release of two new models, investors should expect to see sales spike, revenue follow, and the overall profitability of the company improve. The undisputed saturation of smartphones in developed markets will inevitably put pressure on margins. While this statistic has merit, its decline is not catastrophic. I expect Apple Inc. (NASDAQ:AAPL) to put up a few solid quarters on the release of the new devices and heading into the holidays. That gives Apple some breathing room to release the next “wow” product before investors should feel concerned. Whether the new product segment comes from the iWatch, an iTV, or something yet unimagined, Apple has a little time to dazzle us with its innovations. If investors haven’t seen something new by next summer roll around, then I might get concerned.

The article How Apple Will Defend Its Margins originally appeared on and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

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