Shrinking Profits Expected at Apple

Kevork Djansezian/Getty Images(NEW YORK) -- Apple profits are likely to shrink for the first time in a decade when the company releases its quarterly report on Tuesday.

Analysts expect a sharp drop in iPhone sales compared to last year’s fourth quarter, as well as lower profit margins.

While company sales are expected to rise compared with a year ago, Apple is facing growing competition from Samsung, Google and Amazon.  Apple’s stock has tumbled more than 40 percent since the glory days of last summer when the price-per-share reached more than $700.

Apple may raise its dividend in a bid to keep investors happy. Also, there is a small but growing number of investors who say the company stock price might be under-valued after such a big drop.

Copyright 2013 ABC News Radio

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