The Prototypical Pre-Apple-Earnings News Story

This piece from the AP is just a perfect encapsulation of the current media narrative for Apple. It’s like a paint-by-numbers story, right down to the question mark in the headline:

The report, due out after the stock market closes Tuesday, is expected to show that Apple Inc. is making less money as more customers buy its lower-priced iPhones and iPads instead of the top-of-the-line models. Other consumers increasingly are bypassing Apple products altogether as smartphones and tablet computers running Google’s Android software win more fans.

The first sentence in that paragraph is true: Apple’s profits are down because their margins are down. The second sentence fits the narrative but not the facts; the fact is, Apple is selling more iPhones and iPads than ever.

Android phone and tablet sales are growing, but in conjunction with iPhone and iPad growth, not at their expense.

★ Tuesday, 23 July 2013