iFruit Quarterly Report

In another example of the continued decline of the iFuit company, they announced their quarterly profits yesterday. As expected, there was a drop in their profits from over $11B in 2012 to $9.5B in 2013. Sales of iPhones continue to be strong but their share of the overall market is dropping because of the increase in sales of competing Android phones, especially those from Samsung.

We have been advising investors to dump their iFruit stock since late in 2012 and we see no reason to alter that advice. The iFruit company is traveling the same route many other highly profitable companies took. MSFT is a modern day example of a company that went from the top of the tech heap to sputtering along. Apple is doing the same thing.

In an effort to get their stock price back up they are going to buy back an additional $55 billion in shares. Will this work long term? I doubt it. Only really great new products will do that.