The EPS of Apple’s EPEA-traded products will continue to struggle as its rivals struggle to break even, according to a new report by the research group BMO Capital Markets.
Story continues below advertisementThe report found Apple is expected to post a net loss of $1.7-billion for the fiscal year ending March 31, its second consecutive one.
That compares with a $2.4-billion profit last year.
It said that could continue as the company struggles to generate revenue to meet a key demand from its customers.
Apple, which has long been in a race with its main rivals to catch up with it in the smartphone market, is trying to catch its competitors by developing innovative products that compete directly with its offerings.
Apple will have to make more money from its EPEAs in order to break the profit mark, said the report.
Apple’s performance will likely be the toughest challenge for the company as it tries to win back customers and make a bigger dent in the global smartphone market.
Analysts had expected the company to post earnings of $2-billion this year, as the market value of its smartphone business rose.
But analysts have questioned whether the company can sustain the high prices it is paying for the iPhone and iPad and the high margins that the company is earning on its computer and tablet businesses.
“Apple is going to have to find a way to sell more iPhones, iPads, Macs, iPhones and Macs for a higher price,” said Jefferies analyst Colin Paltrow.
Apple also faces stiff competition from Amazon, Google, and Samsung.
Amazon is in the midst of a merger with Alibaba, and Google has been trying to build its own Android and mobile operating systems.
Microsoft is also trying to compete with Apple.