Is This Killing Apple Inc. (AAPL)?

Apple still holds a clear leadership position in music downloads at 63%of market share, but the online retailer is a competitor to watch considering its aggressive pricing policy and relentless competitive drive. Music streaming has also been gaining popularity lately, and that´s why Apple is in negotiations with record companies to launch its own “iRadio” in order to effectively compete against the likes of Pandora and Spotify.

Although Apple is facing growing competition and changing industry dynamics in areas like tablets and digital content, those businesses still provide plenty of growth opportunities for the company over the next couple years.

Not only that, Tim Cook unequivocally stated in the press conference that Apple is focusing on new product categories as a growth venue in the middle term, categories being the key word here, as opposed to new versions of existing products.

The rumor mill never stops when it comes to Apple Inc. (NASDAQ:AAPL): the company is admittedly working on a new Apple TV, and Bloomberg has reported that it has a team of around 100 designers working on a new smart watch too. These sound like viable options, and they could put the company back in the spotlight when it comes innovation in the tech industry.

Regardless of the potential financial impact of these new products, if the company can prove to investors that it can still innovate and disrupt different industries without Steve Jobs, that would be a big positive for the stock.

Bottom line

Apple has finally found a smart way to distribute its enormous cash hoard to investors, and this makes it an attractive choice for cash loving bargain hunters. Besides, areas like tablets and digital products still provide exciting growth prospects in the long term, and management has stated that new product categories are on the way. It´s hard to tell for sure if the bottom is finally in for Apple Inc. (NASDAQ:AAPL), but there are some strong reasons to think this is a distinct possibility.

The article Why Apple May Have Bottomed After Earnings originally appeared on Fool.com and is written by Andrés Cardenal.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.