A set of 14 analyst forecasts compiled by Bloomberg predicts that Apple’s quarterly profits – due to be reported tomorrow – will have fallen for the first time since 2003.

An earnings report tomorrow may show that fiscal second- quarter net income declined 18 percent to $9.53 billion, or $10.02 a share, according to analysts’ estimates compiled by Bloomberg. Revenue is projected to show a rise of 8 percent to $42.4 billion, the slowest growth rate since 2009 …

Apple’s shares recently fell below $400. Despite widespread expectations that the company is working on two new product categories – an HD TV and a smartwatch – its famous refusal to confirm or deny such rumors is leaving investors nervous. Apple is expected to raise its dividend in an attempt to appease shareholders, with Bloomberg predicting a quarterly dividend of around $3.10 a share.

Those wondering whether now is the right time to buy AAPL face what Alex Gauna of JMP Securities described as the ‘falling knife’ dilemma:

The people who are brave enough to catch a falling knife properly, at the bottom of a decline like this, tend to be rewarded. Those who try to catch it too early will lose a finger.

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