Apple, Second Quarter Earnings | featured news

If Apple Inc's weaker-than-expected quarterly result is anything to go by, the global smartphone industry is a lot more vulnerable to economic shocks these days than during the 2008-2009 financial crisis.

AT&T Inc pulled back its outlook for business services this year, sending its shares down 3 percent despite its better than expected quarterly profit as it reduced costs from customer upgrades to smartphones such as the Apple Inc iPhone.

On Tuesday, Apple is set to report financial results for the second quarter. Analysts are expecting net income of $9.8 billion. But whatever figure Apple reports won't reflect its true profit, because the company hides some of it with an unusual tax maneuver.

In its quarterly earning released on Monday, IBM reported revenues of $26.7 billion – up 12% from the same period last year. With IBM reporting its 4th consecutive quarter of double digit revenue growth, its shares have marched higher since its announcement. The stock is up nearly 50% in the last year surpassing Microsoft as the second largest technology company by market cap behind Apple. IBM’s primary competitors include HP, Dell and Oracle.