iSlump? Apple profits may dip

(CBS News) Apple Inc., is set to report earnings on Wednesday after the market closes and amid reports of Google's growing profits. Many tech-watchers say it is likely that Apple will report its first drop in profits in over a decade.

CBS News' business and economics correspondent, Rebecca Jarvis, explained the expected report is important as Apple is "one of the most widely held stocks out there" and is likely "held by anybody with a retirement account."

Jarvis went on to discuss possible factors behind the expected slump, saying the new iPhone 5 is "expensive to make for Apple" and adding "it looks like fewer people are buying it."

And based on the tech giant's upcoming product pipeline, the company has no new "blockbuster" products in the works. "All the new products are renditions of earlier products," Jarvis said.

Apple is also facing much more competition from Google, Jarvis explained, saying "The Android system has taken the number one spot away from the iPhone, both here in the United States and internationally."

For more from Rebecca Jarvis on what to expect from Apple's announcement, watch the video above.