Apple set for strong financials but Yahoo woes to continue

Technology giants Apple and Yahoo are both set to release their financial results on Tuesday but their fortunes are expected to be markedly different.

Apple continues to cater to rabid consumer demand with its exceptional marketing machine and product launches, which remain unrivalled in the IT industry, while Yahoo is on a spiralling downfall.

Yahoo has posted disappointing revenue and profits this year and it's unlikely this will get any better with the latest results.

Apple, meanwhile, posted its strongest second quarter ever in July, reporting $28.6bn in revenues and $7.31bn in profits. The earnings represented an 82 per cent increase from 2010.

"Apple's results this quarter will definitely continue to be good," Quocirca analyst Clive Longbottom told V3.

Even though many consumers were expecting Apple to reveal the iPhone 5 rather than the iPhone 4S, Longbottom said the disappointment is unlikely to impact sales while other products continue to sell strongly.

"Many telcos were selling off the iPhone 4 relatively cheaply in recent months [to make room for the iPhone 4S] but Apple's other devices, like the MacBook Air and the iPad continue to sell very well," said Longbottom.

"It is unlikely that we will see iPad revenue taking a hit even though Apple has faced increased competition from the likes of Samsung," he added.

Longbottom said the only Apple product likely to take a significant hit is the iPod.

"I expect the iPod won't be selling too well anymore as so many Apple consumers choose to use the iPhone instead," he said.

Longbottom added that it will be Apple's next and final quarter results for the year that will be most interesting.

"Next quarter we will be able to see how the iPhone 4S is performing, how Apple's performing under new ownership and how it's doing without Steve Jobs," he said.