Why Apple Inc. (NASDAQ:AAPL) Could Have Good 3Q Earnings

Apple Inc. (NASDAQ:AAPL) is scheduled to announce its earnings for the third quarter of 2014, and rumors have it that the fundamental and technological factors involved in the Apple’s operations will go a long way. According to the Wall Street estimates, the company will report an increase of 10 percent, on yearly basis. Predictions are that Apple Inc. (NASDAQ:AAPL) will post an EPS of $1.22 for its third quarter of the fiscal year 2014.

The shares of Apple are flying high due to the recent deal that it made with International Business Machines Corporation (NYSE:IBM). Both the rivals have teamed up to introduce improved tablets and apps in order to seize a big share of the market gains. Forrester Research, a market research and investment advisory firm, released its research report recently, according to which government and business enterprises had devoted around $11 billion on the iPads, during the year 2013. This only makes about one third of the iPad sales of one of the biggest tech giants in the IT world. Market analyst firms are predicting a 20 percent increase in the $11 billion figures by the end of 2017.

Apple Inc’s (NASDAQ:APPL) aim is to draw the consumers to Apple ecosystem for it will have triple gains then: gains from phone, tablet and computer market. Once the enterprise users are drawn to iPads, the demands for complementary products will also increase, for instance Macs, iPhones, Apple apps and music services etc.

Apple Inc. (NASDAQ:APPL) will have a secure ground in the enterprise industry after its deal with IBM. Another benefit that goes overlooked most of the time is that the company has maneuvered into the enterprise space before Google could seize it by offering the android platform. The company’s client base in the iProduct sector has gotten saturated: however, there is still uncovered space in the enterprise sector, which the company can seize if the deal with International Business Machines Corp. (NYSE:IBM) goes without any conflicts and issues. The company is still showing growth despite its flat consumer base, mainly because of the enterprise sector sales.

Although Apple (NASDAQ:APPL) has been facing problems in its international operations but the company’s stocks are still profitable. The company’s most recent copyright issue rose in the country of China, where the registration to Apple’s Personal Intelligence Assistance was denied on the basis that Xiaomi already owned those rights. The company, however, through its innovation and technological advancements, has remained successful in keeping its sales and numbers up.

During the recent trading session, July 22, 2014, Apple Inc. (NASDAQ:AAPL) started its stocks at a price of $94.68 and closed at an increased price of $94.72. The intraday range for the company was recorded to be from $94.12 to $94.89. As far as the market capitalization of the company is concerned, the figures are reported to be around $571.13 billion. The company has a price to earnings ratio of 15.84 with a dividend yield of 1.98 percent. Moreover, the company has a beta of 0.92.