Today, Apple reported a record quarterly profit of $54.5 billion with marked sales growth for its iPhone and iPad lines. And yet, in the weeks leading up to today's Q1 earnings report and even the hours that followed, analysts, the media, and the company's stock valuation seemed to suggest that Apple is failing and spiraling toward uncertain future. So, why the staggering disparity between Apple's perceived failings and its irrefutable monetary success?
Apple's massive financial and commercial successes have come with heightened expectations. After years of constant growth, any direction but up raises red flags for analysts and investors. Unlike its competition, even the most minute details of Apple's operations are publicly scrutinized. Earlier this month, The Wall Street Journal published an unconfirmed report claiming that Apple had canceled over half of its manufacturing order for the iPhone 5 due to weak demand. The report sparked a frenzy of similar rumors from anonymous sources both refuting and supporting the claim, resulting in a significant drop in the company's stock valuation.
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