NEW YORK (TheStreet) -- It's been over a week since technology giant Apple (AAPL) reminded Wall Street that its business is run by real people and not magicians.
Although the company generated both revenue and earnings per share growth of 20% for its fiscal third quarter, Apple reported a miss nonetheless.
Analysts were expecting profits of $10.38 per share on revenue of $37.23 billion. The company fell short of that mark by reporting earnings per share of $9.32 and revenue of $35 billion, representing EPS and revenue increases of 19.6% and 22.5% respectively.
Over the past five quarters, the company has averaged 55% growth in revenue. So it stands to reason that growth of (only) 20% would rattle some investor cages. However, Wall Street didn't panic all that much -- at least not to the degree that I had anticipated. The stock (only) dropped 5% on the news as cooler heads prevailed, though it was an initial concern of mine.The company suffered from what I call "iPhone 5 cannibalization" -- anticipation of that and the iPad mini was more than likely the culprit convincing would-be buyers to postpone their purchases. However, it stands to reason that perhaps some of the company's rivals have gained market share in the process -- namely Samsung. But as I've said, as long as both products (iPhone 5 and iPad mini) live up to their billing, I doubt anyone will remember Apple's disappointing third quarter. But it makes me wonder what type of impact tablet announcements from Google (GOOG) and Microsoft (MSFT) might have on Apple sales. Not to mention that Amazon (AMZN) plans to introduce a larger version of its popular Kindle Fire. It seems a bit odd to treat Apple as if it is suddenly an underdog. Its job this coming quarter is to continue with the tradition of producing breathtaking products and restore some sense of normal. However, since the company also attributed some of its lost revenue to concerns surrounding Europe, it is hard to say it is suddenly losing market share, at least not without some meaningful data. It is much too early to say that Google's Nexus 7 tablet is having any sort of impact while Microsoft's Surface has yet to launch.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV