Apple to report its worst quarter in over 13 years

[firestronk]

Sources : http://money.cnn.com/2016/04/25/technology/apple-earnings/index.html?iid=hp-toplead-dom

http://www.inquisitr.com/3033148/apple-is-about-to-report-its-worst-quarter-in-13-years/

 

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On Tuesday afternoon, Apple is expected to say that its sales and profit both fell last quarter -- a rarity for a company that has been growing at a rapid pace, even as it has become the largest technology company on the planet.

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But as rare an event as an Apple sales decline is, Wall Street analysts are expecting an even rarer occurrence last quarter -- a double-digit sales loss. Apple hasn't suffered that kind of ignominious fate since the fall of 2001.

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iPhone

First quarter of 2015: 61.2 million 
First quarter of 2016 forecast: 50.4 million, down 18%

Sales for the Iphone are definitely not doing good currently.

 

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iPad

First quarter of 2015: 12.6 million 
First quarter of 2016 forecast: 10.1 million, down 20%

 

Not surprising as many people have been ditching their ipads for an iphone.

 

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Get used to declining sales. Wall Street analysts expect Apple to post yet another quarter of falling revenue (the third quarter is expected to sink too).

Apple is outpacing the entire tech industry it seems. 

 

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Overall, sales for 2015’s first quarter topped $58 billion. The first quarter of 2016 reportedly brought in $52 billion, a loss of 10 percent in total sales. Wall Street analysts say the current quarter is expected to show declining sales as well. The second quarter of 2016 shows $47.4 billion in sales, and analysts are saying the third is expected *to experience falling revenue, too.

 

Added the missing *to towards the end of the sentence

[Rammix]

Good... 

[Hans Christian | Teri]

5 minutes ago, Rammix said:

Good... 

Why?

[I am an SSD]

7 minutes ago, PhoenixArising said:

Sources : http://money.cnn.com/2016/04/25/technology/apple-earnings/index.html?iid=hp-toplead-dom

http://www.inquisitr.com/3033148/apple-is-about-to-report-its-worst-quarter-in-13-years/

 

Sales for the Iphone are definitely not doing good currently.

 

Not surprising as many people have been ditching their ipads for an iphone.

 

Apple is outpacing the entire tech industry it seems. 

 

Added the missing *to towards the end of the sentence

I guess the iPad pros were too large for the Apple community who are used to everything small...

 

Also people must have already spent on the iPhone 6 to even care about the 6s...bit of oversight in my opinion. You should always go for the S version. Thats when Apple iron out the defects from the original incremental upgrade. In this case, the Nvme storage in the 6S is alone worth the upgrade. The phone is just crazy fast. 

[Nineshadow]

48 minutes ago, I am an SSD said:

I guess the iPad pros were too large for the Apple community who are used to everything small...

Lol. That's why they released the iPhone SE.

 

Anyway, this doesn't come as a surprise. Apple hasn't done anything the past couple of months. They released a pink Macbook. A smaller iPad Pro, whose main appeal was, funny enough, its sheer size. Anything else? Don't think so. Oh right, the iPhone SE. "Hmmm, we have a lot of iPhone 5's leftover. What should we do with them? Should we sell them at a lower price so more people might want to buy one? Heck no, let's upgrade the specs and sell them for more. Then brag about how ingenious we are to release such a small smartphone."

 

Or, correction, people kept buying iPhone 5S's as an entry to the Apple world without breaking the bank for an iPhone 6/6S, and eventually Apple ran out of iPhone 5S's, so they decided to make some more. It's not so much a market for small smartphones as it is a market for cheap iPhones.

 

[Rune]

On one hand, I hate almost every mobile device Apple makes. On the other hand, if there comes a time when there isn't any real competition for android things will get ugly very quickly.

[ShadowCaptain]

17 minutes ago, Rune said:

On one hand, I hate almost every mobile device Apple makes. On the other hand, if there comes a time when there isn't any real competition for android things will get ugly very quickly.

 

Curious as to why you hate them so much

 

but I agree, Android needs competition to push innovation  

[Rune]

10 minutes ago, ShadowCaptain said:

Curious as to why you hate them so much

but I agree, Android needs competition to push innovation  

Many reasons. Poor design choices, poor pricing schemes, etc.

[ShadowCaptain]

3 minutes ago, Rune said:

Many reasons. Poor design choices, poor pricing schemes, etc.

Each to their own

[cesrai]

27 minutes ago, Nineshadow said:

"Hmmm, we have a lot of iPhone 5's leftover. What should we do with them? Should we sell them at a lower price so more people might want to buy one? Heck no, let's upgrade the specs and sell them for more. Then brag about how ingenious we are to release such a small smartphone."

Close one, but not on point. They made the SE because Apple sold 30 million 4-inch iPhones last year, so it's a no brainer to make the SE as there is a market to it.

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Everyone so this coming even Tim Cock, but Apple are gonna get into new markets like VR and such.

Apple CEO Tim Cook predicted back in January that iPhone sales would drop for the first time, and told CNN that 60 percent of iPhone users hadn’t upgraded to iPhone 6 or 6 Plus, or any of the other new models. 

 Cook said he expects iPhone sales will fall for the first time in history this quarter.

Apple suppliers have been cutting production of iPhone components left and right, citing weaker demand. Cook chalked it up to a really great quarter a year earlier, leading to a difficult comparison, on top of a "dramatically different" economic environment now versus 2015

 

http://money.cnn.com/2016/01/26/technology/apple-earnings/?iid=EL

[Twixel]

They are doing badly because they actually listened to the general public for once....

 

[cesrai]

1 minute ago, Twixel said:

They are doing badly because they actually listened to the general public for once....

 

???

[Nineshadow]

4 minutes ago, cesrai said:

Close one, but not on point. They made the SE because Apple sold 30 million 4-inch iPhones last year, so it's a no brainer to make the SE as there is a market to it.

 

---

Exactly.

Old iPhone still sold well because people wanted an iPhone but didn't want to pay so much for an iPhone 6 or 6s. And the iPhone 5S is(was) still a damn good phone.

[Twixel]

1 minute ago, cesrai said:

???

iPad Pro......................................

iPhone SE..............................................

 

[cesrai]

Just now, Twixel said:

iPad Pro......................................

iPhone SE..............................................

 

First, the reason is that their iPhone sales went down and that's partily due to that 60% of iPhone users just didn't upgrade. Secondly, I highly doubt that they made those out of listening to the public.

[ShadowCaptain]

9 minutes ago, cesrai said:

First, the reason is that their iPhone sales went down and that's partily due to that 60% of iPhone users just didn't upgrade.

Yup iPhone 5 users and above have little reason to upgrade

I mean I was using my iPhone 5 the other day, and it works perfectly, nice and fast, still a  good camera, plays games fine etc

Like I only upgrade because I get a new phone on contract every 2 years

 

For my iPad - well I have the 4, which is a couple years old, I game on it every day, and watch at least an hour of YouTube and check social media etc, and I edit photos on it - I have no real reason to upgrade, I mean I COULD but I dont NEED to

my brother has a mac from 2008, upgraded with RAM and SSD, and still edits all his photos in lightroom and runs engineering software for Jaguar on his laptop - again, he said he doesnt need to upgrade yet

[captain cactus]

At this point new tech barely gets better than the tech it's replacing so there's literary no reason to upgrade, unless you want to have the latest tech all the time.

 

Also, asking €750 for a 16GB iPhone was already stupid in 2014 (both the price and the 16GB model), yet Apple is still doing it in 2016 which might also be a reason.

[unsubscribed]

IMHO Apple needs to rethink their R&D strategy. People use Apple devices because they are cool, it's easy to use and the whole ecosystem is working reasonably well together. Problem is the glamour is fading. Samsung can offer just as cool and just as capable device. And they have their own stores now too.

Jobs was very charismatic figure and he was in the right place at the right time. Unfortunately we don't have him anymore and we need someone new, someone just excited and ideally a person who would have the same impact within Apple as well. And hey, I don't even use Apple products!

 

The reality is phones are becoming boring. We all have them, big screens, small screens, HD, 4k, Wireless AC etc. Nothing faster would surprise us much as we would not feel it as much as before. Consumers need something new, something exciting, another wow thing like a touchscreen retina display once was. Prove me wrong but VR has just that and Apple is not on board for now. This needs to change.

 

p.s. I think I will shoot myself in the foot with this because if Apple would go for VR they would likely patent the bunch of key technologies and royally screw up the overall development. So maybe it is good that they are not at it just yet

[CommandMan7]

Well, this is what happens when you reach market saturation. To continue growing iPhone sales, Apple will have to:

1. Start competing with Android's customization (not going to happen)
2. Become undisputed best smartphone camera (7 plus dual camera system?) 
3. Become battery life king (not happening soon, but maybe iPhone 8?)
4. Embrace the wireless ecosystem completely (remove headphone jack & home button)
5. Introduce other high quality, useful, unique accessories for the iPhone (VR?)

Even if Apple can only do any 2 of those things, the iPhone 7 can still remain a strong contender for phone buyers. If they can do 1, they'll suffer but rebound on the iPhone 8. If they can't do any, then they're going to be hurt severely.

[ThinkWithPortals]

Doesn't surprise me.

Apple's just really been relying on their cool factor to do as well as they have been doing for the same little while. Now devices are present which have more features and are starting to be as cool, they've really got to pull their fingers out and get working if they want to keep turning profits to the extent they have been.

[AyeJayKay]

Apple isn't too worried about it. There is a massive crowd in the regular 6 camp awaiting their 2 year contracts to expire for the iPhone 7. Even for those without contracts, its known that many people like to wait for the full revision rather than the S updates.

 

iPhone is Apple's bread and butter. Pretty sure it accounts for like 60% of their revenue or something ridiculous like that. If sales are still down after the 7, then Apple may have something to worry about.

[79wjd]

Maybe Apple should join the likes of Android device manufacturers and stop supporting their phones after one to two years. 

 

/s 

 

But in all seriousness, this was the innevitable outcome as there isn't much of a need to upgrade anymore (and not just with iPhones, it applies with Android as well). My dad's almost four-year old iPhone 5 still works great and for most people it would still be fine. The only reason why most people would need to upgrade is because the battery starts to deteriorate after a long period of time and/or they want a bigger/smaller screen.

 

What further complicates things is that contracts are finally disappearing in the US. Until recently most people were on a contract and thus it's been engrained by society that every two years you get a new phone. Now that contracts are disappearing and people are forced to pay the full cost of the phone (either upfront or through monthly payments) the feeling that you need to upgrade every two years is also disappearing. 

[jaggysnake57]

7 hours ago, Rammix said:

Good... 

i hate android but i dont want it to fail.....really this is a silly comment

6 hours ago, Rune said:

Many reasons. Poor design choices, poor pricing schemes, etc.

sounds like someone who cant afford an iphone  is jelous

 

ipads are getting to the point where you dont need to upgrade every 2 years, my ipad 3 was slow as all hell by the end but my air 2 is still going strong.

 

it will be interesting to see how the 7 does, i feel the slump is more to do with the 's' cycle

 

 

 

[Bensemus]

Despite lots of people harping on Apple for planned obsolescence they support their phones for a long time and their phones are usable for a long time. I still have my 5 which I got launch weekend and have no problems including battery charge level. I use bluetooth headphones and easily get through a day still. I will probably keep using it till it loses support in 2 years time bar it breaking. 

 

Like others have said we've reached market saturation where most people have very capable phones. Few people need the speed offered by new phones.

[Misanthrope]

If your worst quarter still keeps you as the richest company in the world it doesn't really matters all that much: a few less yatchs for the executives