Image from CNN Money
An interesting post at CNN Money takes a look at Apple's quarterly growth. Looking at the company's financials over the last 11 months shows that Apple has grown at an average of 37.5 percent year over year with earnings averaging at 68 percent. To those of us who aren't investors, analysts or big time financial people it basically means, "Whoa! Apple is making a boatload of money!"
However, CNN Money points out something called the law of large numbers, a concept that states, "as a company grows, its chances of sustaining large percentage revenue gains diminish." It simply states that growth at rates 30 to 50 percent year over year are economically impossible to sustain, because the rate of growth would have to be on a constant increase.
Still, one individual says that the rule may not apply to Apple, at least not yet.
Robert Paul Leitao posts on his blog:
In the June quarter close to 50% of Apple's revenue was derived from products that did not exist in the market just over three years ago. In the September and December quarters, well over 50% of Apple's reported revenue will be derived from iPhone and iPad sales. At the moment there's no practical limit to the size of the market for these two products.
Mr. Leitao goes in-depth with his analysis of Apple's business, mentioning each of Apple's products and revenue growth related to them. With a new rumored iPod Touch complete with camera, it's very possible that Apple will continue to push products that consumers continue to buy. The question is: Will it ever slow down?
[via Robert Paul Leitao]