Is Apple’s Growth Not Enough for Some Investors?

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Oct. 29 (Bloomberg) -- Bloomberg senior West Coast correspondent Jon Erlichman examines reaction to Apple’s sales forecasts as the company sees slower holiday sales and speculation on what may come next. He speaks on Bloomberg Television’s “In The Loop.”

Apple reported a beat on fourth- quarter earnings, but they see holiday sales slowing to levels they have not seen since 2008. in about five years.

Jon erlichman joins us with more on apple.

Jon, what stood out in this report?

What is amazing about this story, this business continues to grow.

The fact that it is not growing at the same rate we saw in the early days of the iphone seems to be a concern for investors.

If you sit back, here is a company that generated something like 37 $.5 billion -- $37.5 million in its fiscal fourth quarter.

It is forecasting that it will generate upwards of $58 billion.

It could see revenue rise by something like $20 billion.

The stock is rising right now.

The immediate reaction last night was negative.

Some people were concerned about profitability, margins getting squeezed as lower-priced products come into the next.

That was part of the story.

Another part is that they are delaying some revenue tied to the software that comes with iphones and ipods.

It is a boring accounting story, some analysts have worked their way through that.

Maybe it is not as much about a competitive threat as it is about apple doing a better job explaining when it should be receiving revenue from its business.

The stock is up in the premarket, marginally.

Analysts, including one we had earlier, tom, are still really bullish on this company.

You have got to wonder, have they drank the kool-aid, are they not stepping back and off to look at this company?

It has been one way for apple for so long.

Certainly, some analysts, the idea that the stock was going to 1000 and then it moves in the other direction.

People are looking at the fact that they refreshed their product line.

They have 2 new iphones, new ipads, new macs.

That is not as exciting as a new product category.

Can you blame them for wanting to squeeze every profit out of this existing ipad and iphone story?

There is the possibility that the company could be setting themselves up for next chapters, whether a deal with china mobile in the chinese market.

You never know, there could be more coming on the shareholder friendly front with carl icahn pushing for a $150 -- $150 billion stock buyback.

Jon, thank you so much.

Jon erlichman, catch all the latest in tech and media on "

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