Apple is set to announce its financial earnings results for the second quarter of the 2016 fiscal year at 1:30 p.m. Pacific, and the consensus among analysts is that the iPhone maker will report its first quarterly revenue decline in over a decade.
Wall Street analysts project that Apple will report revenue of around $52 billion, or nearly a 10-percent decline compared to the year-ago quarter. Today's earnings results are based on the three-month period between December 27, 2015 and March 26, 2016.
Apple itself projected quarterly revenue of between $50 and $53 billion, compared to $58 billion in the year-ago quarter, possibly signaling the end of over 50 consecutive quarters of year-over-year revenue growth dating back to 2003.
Tim Cook, CEO, already cautioned investors that iPhone sales will likely decline in the second fiscal quarter. That decline will be realized if Apple sells fewer than 61.2 million iPhones this quarter, which appears likely given most analysts expect sales to hover around the 50 to 51 million mark.
Apple's quarterly revenue between 2005 and 2016 (Source: Statista)
iPhone SE sales will not be included in that total, as the lower-priced smartphone launched on March 31, five days after the quarter ended.
MacRumors will be providing live blog coverage of Apple's earnings conference call with CEO Tim Cook and CFO Luca Maestri at 2:00 p.m. Pacific.
AAPL is trading slightly lower on the NASDAQ at around the $104 mark in pre-market trading ahead of today's announcement.
Article Link: Apple Forecasted to Report First Quarterly Revenue Decline Since 2003
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Apple Forecasted to Report First Quarterly Revenue Decline Since 2003
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I recently went and bought a PC tower, because I started wanting to do 4K video editing. For a fraction of the price of the Mac Pro. Unfortunately, if you are a creative professional - the Mac is actually a really bad choice at the moment. The iMac doesn't cut it with its laptop CPUs and GPUs, and the Mac Pro is way overpriced, and hasn't been refreshed to make it worth the price.
For some reason, Apple seems to be abandoning the upper mid-end creative professional to Windows. But then, the profits from iPhone are probably more alluring than the Mac division.
BTW, this is a consequence to vendor lock in - if your sole vendor doesn't make the product you need, you are in trouble. It is nice that most Software has become cross platform, particularly with the Cloud. It makes it easier to migrate out of Apple's ecosystem, unless they hijack your SMS number
For some reason, Apple seems to be abandoning the upper mid-end creative professional to Windows. But then, the profits from iPhone are probably more alluring than the Mac division.
BTW, this is a consequence to vendor lock in - if your sole vendor doesn't make the product you need, you are in trouble. It is nice that most Software has become cross platform, particularly with the Cloud. It makes it easier to migrate out of Apple's ecosystem, unless they hijack your SMS number
A million times better than Jony's blinding white apps and cartoony icons...
Not even one time, much prefer white apps rather than cartoony skeuomorphism.
Wow so much negativity in this thread. I actually wanted to wait until WWDC to decide wether I jump ship but just opend the Ars review of HTC 10 in a new tab to re-read.
Except bringing out re-baked products every year and touting them as new and awesome and spectacular isn't helping them.
So you'd rather have no contrast within the apps, icons that look like they were designed within Microsoft clipart and ambiguous buttons? At least Scott knew how UIs were supposed to look and function, Jony doesn't know **** about designing software, he's completely incompetent in that department and Cook was an idiot for thinking Ive could properly do the job.
Ha-ha. You must be joking about Windows 10. All that data slurping that is going on is just obscene. Microsoft wants to be Google Mk 2.
Do you like having adverts displayed on your screens saver?
Do you like not having any say about the installation of update?
What are you going to do when Windows becomes a pay monthly service?
Please, pleae tell us.
The Apple Calender App has never been more useless since they did away with the skeuomorhic version - that version provided incredible legibility and at glance clarity - the new version is a hundred year set back.
My comment was to agree100% with your post - either Apple generates new / exciting products or people will go elsewhere. We are on the same wave length
I agree with the posters who wrote that Jony deserves some of the blame, if one is going to blame folks at Apple. Some of the recent design choices are problematic and quite horrid -- I'll just mention the battery case. On the other hand, the general obsession with thinness above all else is a bit ridiculous. There's a fine balance to be maintained between aesthetics and utility, and I'm not sure the balance is there anymore.
Your point about area of improvement is odd. There is always area for improvement. Citing hardware spec improvement as the main example is ridiculous. I guess if someone held a pencil up to your face and asked you how you'd improve it you'd cite ways to improve that specific idea, rather than replacing the idea with one never before seen.
There are plenty of other people in the world who have the gift Jobs had, they just don't have the backing. Tim Cook has the backing but does not have the gift. This complacent idea that we must accept everything as it is, is exactly what Jobs was against. And many appear to simply accept Tim as not being Jobs rather than saying we just need to find another with the gift that Jobs had.
Yes, but Corporations don't just give people stuff if it is not maximizing profits. Apple is no different then any other corporation in the world. It is ran to make the most money it can and increase shareholder value.
Sure..but I think the increase in revenues would be worth the decrease in price.
Agreed, I do think another visionary has not evolved (yet).
It just proves that it takes a while for that to happen.
I am pretty sure it is in Apple's future and Tim is smart enough to realize that.
His presentations are lukewarm, because mostly there is not anything really new to promote.
The Apple watch needs a lot of work and they seem to no longer able to keep things a secret.
Problem is also that the "Think differently" people these days do their own thing and do not want to have a boss. Elon Musk would be a good example.
For now I am fine with my MBPs, iPad and iPhone.
The watch maybe in a few years.
Apple Music: no, iCloud no, if it stays the way it is.
The car : No (If it is a car) and that is without even seeing it
Tough road ahead, but Apple has been worse off before!
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IF YOU'RE TALKING specifically about the Apple watch's revenues, you have absolutely no way of claiming "billions". None of us do. Here's the problem. Apple will not talk numbers in any specifics.
From the last quarterly result, which was a record revenue period end (the highest revenues ever). The Apple watch itself was not given it's own product category in it's listing. It was lumped in with "Other" revenues.
Other revenues for Apple includes: Apple Watch. Accessories (like Time Machine). Apple TV,
This category of revenue only amounted to 6% of total revenues for Q4 2015. Which equate to about 4.5B.
The Revenues for "Other" Prior to the Apple watch (4th Q 2014, the year before) were 4%. The Other category prior to the Apple Watch was hovering around 2.5B.
This gets even murkier as we don't know any true volume of watch sales (The Analysts are using the numbers I did above to guess volume based on average price of unit). What we dont know, is how much of that Other category is the watch. Did the Apple TV not increase sales as well? what about Time Machine? what about other Accessories like Mice, Keyboards etc?
TLDR:
All we know is that between 4Q 2014 and 4Q 2015, the Other category grew by approximately 2 Billion. But we have absolutely no idea what if any of Apple's products lead to that growth.
In reality, the Apple watch likely has sold < 3 billion worth. Likely around 2.5. (Anything more than that would indicate that other Apple products in this category actually sold less).
Now, whether or not the 2.5ish billion in revenues is successfully or not? Only Apple can tell us. But the actual revenue numbers from the watch are so inconsequential to Apple's overall financial health that they are way too small to be considered a "Run away success".
Don't worry. If Tim goes, Eddy will have no choice. Tim let him out of the box. There is no box to go back in if Tim get's kicked. Let's hope for change.
All the more reason for Tim to stop trying to sell iPads as laptops and actually make the laptops better
The iCar is a joke honestly, why on earth is Apple getting in automobiles? Seriously what we need is Apple to start focusing on its core products again, the Macs and the iPhone. They are all lagging behind the competition.
How about a battery on the iPhone which can keep up with many of the Android phones on the market or how about a new Macbook Pro which doesn't feel like an over priced obsolete product.
...will report its first quarterly revenue decline in over a decade.
Apple's quarterly revenue between 2005 and 2016 (Source: Statista)
how can that be true when it is clear from the chart shown that 2012 Q3 to 2013 Q3 was also a decline?
I think it would be pretty easy to get that 12% up if they did some ads for Mac's and made them the powerhouse's they used to be
12% of revenue from Macs? It's hardly worth the effort at this point. Tim and Apple management understand this and it is why you see less and less effort when it comes to OSX and Macs. Sadly they just don't matter enough to spend a lot of resources, specially product lines like the Mac Pro. There is no point in wasting a lot of engineering resources on certain low margin products. They are better off to shift those resources to the iDevice products. That is where they are making huge revenues and profits.
Yes, I much prefer iOS 7. As far as your comment about cook, I happen to like him, I like the company's products and I like the company's ethos.
Lack of innovation, playing it safe, the 16gb milking, soldergate, greed etc it's finally paying its toll, good to see market reaction to all the fiasco.