|
Download Apple Inc's quarterly profit is projected to shrink for the first time in a decade, hurt by new products with lower profit margins and slower growth in iPhone sales. Fourteen analysts have reduced their estimates for Apple in the past four weeks, as shares in the world's most valuable technology company continue their slide from a September record high. Competition from Samsung Electronics Co is also weighing on the stock and pressure is mounting for Chief Executive Officer Tim Cook to introduce hit products to reignite sales. Indications are that the company may report that fiscal second-quarter net income declined 18percent to $9.53 billion - $10.02 a share. Revenue is projected to show a rise of 8 percent to$42.4 billion, the slowest growth rate since 2009. "The market is in show-me mode for Apple," said Laurence Balter, an analyst at Oracle Investment Research who is based in Fox Island, Washington, and has a buy rating on Apple. "The market needs to see some evidence that the future looks bright because that candle is flickering." To placate investors, Apple may increase its dividend or boost share buybacks. Katy Huberty, an analyst at Morgan Stanley, said an announcement may come with the company's earnings release. Toni Sacconaghi, an analyst at Sanford C Bernstein & Co, predicts it will come much later. Apple may raise its current quarterly dividend by 17 percent to about $3.10 a share, according to a Bloomberg estimate, based on payouts of other large technology companies, Apple's project ed earnings and the amount of cash it holds. | 
