Nonetheless, the company remains the most profitable in the technology industry. Apple’s projected quarterly profit is more than what Google Inc and Microsoft Corp reported last week combined. In the smartphone market, Apple accounted for about 70 percent of all profits last year, according to Canaccord Genuity.
Investing in Apple by weighing its continued profitability against slowing growth and declining shares is a classic “falling knife” dilemma, according to Alex Gauna, an analyst at JMP Securities in San Francisco.
“The people who are brave enough to catch a falling knife properly, at the bottom of a decline like this, tend to be rewarded,” Gauna said. “Those who try to catch it too early will lose a finger.”