Only new products can sustain apple's growth: Professor Loizos Heracleous, Professor of Strategy at Warwick Business School.

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Professor Loizos Heracleous believes Apple needs to produce more blockbuster products to keep investors happy despite producing record quarterly revenues.

The Californian tech giant revealed revenues rose to $57.6 billion (34.7 billion) for the first fiscal quarter of 2014, which includes Christmas, giving Apple a profit of $13.1 billion ([pounds sterling]7.9 billion), matching its record surplus of a year ago.

Despite the impressive numbers, with record iPhone and iPad sales of 51 million and 26 million respectively, Apple's shares fell by more than eight per cent with investors spooked that it missed analyst predictions of even better returns.

Professor Heracleous, who is Professor of Strategy at Warwick Business School, feels the only way for Apple to keep producing the growth that investors want is by creating new products. especially as the high-end smartphone market is now looking mature in many parts of the world, and with more similarity across offerings from different competitors.

"Even though Apple has achieved record revenues and earnings per share, the growth rates of its leading products--the iPhone and iPad - are reducing," said Professor Heracleous.

"This means that to recapture the rates of growth that Apple historically delivered, Apple should introduce offerings of the calibre of these leading products.

"These category-defining, disruptive offerings are in the works according to Apple, and are expected to be released over the next few months."

Despite not meeting investors' expectations Professor Heracleous, who discovered Apple's 'Quantum Strategy' when researching the company, believes its competitive advantage in many areas means it is still a good company to bet on in the long term.

"Apple's performance did not fully meet analysts' growth and earnings expectations," said Professor Heracleous.

"But Apple's quarterly revenues were the highest in its history - and...

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