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After Google and Microsoft reported results that were highly disappointing, sending both stocks lower, investors are turning their attention to another tech giant, wondering if that would be the case with Apple Inc.

Apple didnt launch any major products over the last three months and that is the main reason for the skepticism over tech giant earnings report due to be issued today. High-end smartphone sales are contracting, and Apple has no real low-cost solution for prepaid customers and developing global markets. Apple customers are increasingly choosing iPad minis and older iPhone models, which carry lower profit margins than newer and bigger devices.

So far this year Apple shares declined about 20%, and Tuesdays earnings news would definitely trigger some movement in the stock. Wall Street analysts expect Apples revenue to be flat with the year-ago quarter, while earnings per share are projected to drop 22%, to $7.31.

Apples financials are heading in the wrong direction as the gross margin has fallen in five straight quarters, and Apple announced in April that earnings fell year-over-year for the first time since late 2003. If this quarters sales come in below what Apple reported a year ago it will mark the first time that occurred in more than 10 years. According to 50% of Wall Street analysts this is most likely to happen.

However, there is another angle to look at the companys condition. Just because its not growing doesnt mean Apple is unsuccessful. The company is still expected to post $35 billion in sales and $6.9 billion in profit. Apple is currently the sixth largest U.S. company measured by revenue, and its sales are expected to grow by 9% in 2013.

“Even more important than quarterly numbers is the product cycle”, Societe Generale analyst Andy Perkinssaid to CNBC: “We will be looking for signs of new products such as the low-priced handset … and possibly the iWatch.”

Despite recent failure of the last iPhone device to gain market share, Apple remains an exceptional brand for their customers. If the company manages to issue one or two successful products it could easily turn momentum around and get on the fast growing track. The upcoming release of new devices would be of a great importance.

Apples shares closed at 0.32% gain yesterday.

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