Apple Forecasted to Report First Quarterly Revenue Decline Since 2003

[TallManNY]

What shade of white do you want for your different calendars?


Samsung managed to get a 20% larger battery in their phone while still being a very thin phone without noticeable added bulk, and the cost stayed the same. Why couldn't Apple do the same, or better?

I don't know. But it might be because of lack of 3D touch in the screen. Also that Galaxy S7 came out six months after the 6S, so it isn't entirely a fair comparison.

As for the cost, we have no idea what profits Samsung makes on the G S7. They may be making far less margins by keeping the cost down for consumers.

 

[tampageek]

The cell carriers had everyone on a 2 yr upgrade programs with subsidies. That made it easy for apple to constantly be selling iphones. Last couple of years that changed. Now the plans don't offset the cost of the device and full price is added to your bill. I can't help but think that this has something to do with drop in sales. A lot of people can't afford a new $800 phone every 2 years. So Tim can scratch his head in wonder at lower sales, but it won't change the fact that not everyone is sitting on a pile of cash they can throw at apple every 2 years.

 

[sober2ndthought]

Looks like a decline in Mac sales has been a major factor in the decline profits. Maybe its time Apple stops ignoring the Mac lineup.

 

[jujufreeze]

Battery degradation is one of the few things that would force people to upgrade..

On the feature front, there are still thing that can attract upgrades and new buyers. The camera for example needs a lot of work, especially the flash..they could introduce xenon flash.

The rumored OLED screen might bring some interesting features as well.

Smartphones still have some time fore they become like desktop PCs or laptops.

Significantly improved battery is one of the few things that will cause me to upgrade sooner

 

[bluush]

It's ok guys. Once they release a phone with no headphone jack sales will skyrocket again. Nobody likes to listen to music on their portable devices.

 

[Ray mr]

This is fantastic news, and any single  user should be happy.

While Apple makes the best products (best Phone, Best tablet, Best PCs, Best AIOs, Best ecosystem) they also make the worst (every single 1GBram and/or 16GB iOS device, every single harddrive equipped Mac, every Macbook Air sold after 2012 with that pathetic and disgusting TN panel that doesn't belong in a 100$ Chromebook, etc.).

What about the thought process that lead them to abandon Pro-software? Of course, that had a minimum direct impact, but it changed the perception of the company. How do you value that?

Not only that, hopefully some users abandon  and the ecosystem. It would be great of if all of those sad people defending the 1GB of Ram, 16 GB of storage, lackluster camera, that keep buying Apple products based on hype and misinformation, abandon the ecosystem. They fail to see those decision for what they are: Penny counters. Pathetic penny counters. Pennies that hold technology back.

Remember when you could say "choose what you want" to those asking for advice when buying Apple products? Just look at the Mac line-up, with all of those cheap tricks and disgustingly overpriced and outdated machines: Macs without SSDs, TN Panels, Macs with Ivy Bridge processors... Or iOS devices with 16GB of storage (barely enough for default apps and room for updates, no matter actually using the device), 1GB of RAM (useless for browsing the web, or actually using the device)...

It was known that those pathetic decisions would come to bite the company. I think that the main issue is that guys like Ive (designer) + Cook (the best bean counter on the planet) + Phil (Marketing) have way too much power against the Technical ones (Craig, previously Scott, etc.). Those guys shared the power. Since Jobs died, Phil became more powerful and more of a spokesperson, Cook became CEO, Scott was fired. This clearly ****ed up the balance.

Apple has the most talented people. Apple is the most successful and lucrative public traded company of all time. Apple has no rivals, no immediate dangers... But they dropped the line countless times and this contributes for the "doomed" atmosphere and affects their image. The issue is at the top. Phil has to go. Marketing can't be seen. Products should sell based on their merits (the 6s has a lot of them!). Everything that comes from Phil's mouth is BS. Or Ive's. Also, a CEO should be more balanced than 100% bean counter.

Affecting their image affects costumers that are only driven by it: The same people that would buy those pathetic devices with 16GB of storage but are now buying phones with pathetic support, inferior ecosystems and curved screens.

Those that are burned by LOW RAM in phones, iPads, desktops etc. will not come back! Instead they should be a customer for life. This is what's wrong with the bean counter approach. You Get higher initial quarterly earnings and then the sudden drop off.

After a while you run out of people on earth to burn.

 

[I7guy]

Those that are burned by LOW RAM in phones, iPads, desktops etc. will not come back! Instead they should be a customer for life. This is what's wrong with the bean counter approach. You Get higher initial quarterly earnings and then the sudden drop off.

After a while you run out of people on earth to burn.

How many people do you estimate this would be? 10 or 20? 100? The hyperbole sounds great, but what does it really mean?

 

[pedrom]

How many people do you estimate this would be? 10 or 20? 100? The hyperbole sounds great, but what does it really mean?

Are you trolling? What does that mean?

It means a **** lot of unhappy people when they can't even updated their phones (available storage requirements), have to delete a lot to do it, can't even properly browse the web with more than 2 active tabs... While updates could've been nice news, they become a burden.

Pretty much everybody experienced that, at this point.

 

[brinary001]

I think sometimes people forget this, Apple normally release products around September and October (iPhones in September and Mac's and iPad's in October) it's only recently (last year) that Apple started hosting an even in March/April time. WWDC had usually been software with the odd Mac update and the very rare iPhone update (iPhone 4 I believe).

Correct, iPhones 1-4 saw summer launches.

 

[I7guy]

Are you trolling? What does that mean?

It means a **** lot of unhappy people when they can't even updated their phones (available storage requirements), have to delete a lot to do it, can't even properly browse the web with more than 2 active tabs... While updates could've been nice news, they become a burden.

Pretty much everybody experienced that, at this point.

I'm asking a legitimate question and would like to see some authoritative facts, you seem to be speaking for the general populace, else maybe it's not me who is trolling.

 

[Renzatic]

Saturation? How? Apple is only selling 15-18% of smartphones world wide. Android is killing it with 80%+ share. Sure, Apple may make more money on each sell but they don't own 90%+ of the market, therefore it's not market saturation.

They represent the higher end of the market. Unless they plan on selling sub $150 iPhones, they've probably reached saturation.

 

[szw-mapple fan]

The real reason for the decrease is simply that the iPhone 6 sold too well. If you look at the sales numbers from the pre-6 years, they’ve been growing at a steady rate, but the pent up demand for large phones sudddenly gave Apple a much higher sales increase for the 6. When the 6s rolls around it’s back to the old trajectory, so naturally, it’ll be a bit of an decrease.

 

[SusanK]

If that was true, Apple would allow its stock to fall further and won't be investing in buy back!

Buyback is taking money from one pocket and putting it in the other. Cook's Apple has taken on debt to do this. Apple lost over one quarter of market value in the last year per Fidelity today.

Cook fell into a bed of roses positioned on debt free pile of cash. He's trying to break his arm patting himself on the back. No time for innovation.

Buyback is Cook putting an artificial floor under the share price to hang on to his day job. Thanks Carl!

 

[BillyMatt87]

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.

Dude we get it, you're a fanboy and Apple can do absolutely no wrong in your eyes.

Seriously, Cook needs to go and be replaced with a CEO who has some sort of vision, not the bottom line. Since Cook took over, we've seen Apple bloat their previously simple and streamlined product lineups in favor of maximizing profits, a severe decline in the quality of both software platforms (iOS in particular), attempting to position Apple as a luxury fashion brand and trying to do everything under the sun (the prospect of an Apple car sounds they're actively trying to become a parody of themselves).

The truth of the matter is, Apple is not the company that Jobs built anymore. There is no focus or excitement from them anymore. They've become boring and stagnant and I've sadly learned to not expect much from them anymore. Hell, the last event was a snoozefest: a repackaged iPhone 5S, a (slightly overpriced) 9.7" iPad Pro and freaking watch bands. Is that the best they can do? Obviously not, but since people like you will seemingly buy anything with an Apple logo slapped on the back and find ways to justify everything they do, they can get away with it and laugh all the way to the bank...

 

[uid15]

Forum armchair "experts" on every aspect of Apple, seem to have an awful lot of free time on their hands to comment on forums; of they know SO MUCH, why not get a job as a REAL analyst and fill in this free time?

Allow me to give you a concise summary:

~ 1: "Apple is doomed" comes the predictable, annual cry.

~ 2: Apple remain calm and inevitably un-doomed.

~ 3: Aforementioned armchair experts scurry away, comments long forgotten (or denied), never to raise their heads again.

 

[SusanK]

Uh huh. That's why I am posting from a 2012 MBA running ML while the new MBA I bought Saturday is on the shelf. So many annoying things about El Cap. I especially love that stupid white area that makes it look as if there is a window open behind the browser.

I needed an updated browser for certain sites so I guess Tricky Tim won that one. No way would I give up ML for El Crap. Next new computer will probably be a Windows box. If someone told me that four years ago I would have called 911 for them to rule out clinical manifestations.

I'll be calling Forstall's name in my sleep tonight.

 

[Renzatic]

I'll be calling Forstall's name in my sleep tonight.

"zzzz...Scott! No! There's no such thing as too much faux wood grain...zzzz"

 

[Razeus]

The nickel and dime scheme started years ago, right after Jobs died.

2011: Basically a repackaged iPhone 4 with Siri, a software upgrade, shifted antenna bands and a new processor, all for $199+ tax on a two year contract.

2012: A sudden change to the head phone jack (although I admit it was needed), however it still required people to buy an adapter or a new accessory to make everything work properly again.

2013: iPhone 5C released with a plastic case and ugly colors to save on production costs.

2014: Apple Pay is released, but charges the banks money, slowing the roll out significantly.

2015: Lack of an upgrade in storage to 32 GB base model iPhones, so grandma walks into an AT&T store three weeks later wondering why she can't update her phone software.

2016: An iPhone SE built with iPhone 5S externals left in storage.

And don't forget the next iPhone is rumored to come WITHOUT a headphone jack. That'll be $50 for a set of headphones please.

 

[trifid]

The nickel and dime scheme started years ago, right after Jobs died.

2011: Basically a repackaged iPhone 4 with Siri, a software upgrade, shifted antenna bands and a new processor, all for $199+ tax on a two year contract.

2012: A sudden change to the head phone jack (although I admit it was needed), however it still required people to buy an adapter or a new accessory to make everything work properly again.

2013: iPhone 5C released with a plastic case and ugly colors to save on production costs.

2014: Apple Pay is released, but charges the banks money, slowing the roll out significantly.

2015: Lack of an upgrade in storage to 32 GB base model iPhones, so grandma walks into an AT&T store three weeks later wondering why she can't update her phone software.

2016: An iPhone SE built with iPhone 5S externals left in storage.

lol, that's so funny, great post.

 

[I7guy]

Dude we get it, you're a fanboy and Apple can do absolutely no wrong in your eyes.

Seriously, Cook needs to go and be replaced with a CEO who has some sort of vision, not the bottom line. Since Cook took over, we've seen Apple bloat their previously simple and streamlined product lineups in favor of maximizing profits, a severe decline in the quality of both software platforms (iOS in particular), attempting to position Apple as a luxury fashion brand and trying to do everything under the sun (the prospect of an Apple car sounds they're actively trying to become a parody of themselves).

The truth of the matter is, Apple is not the company that Jobs built anymore. There is no focus or excitement from them anymore. They've become boring and stagnant and I've sadly learned to not expect much from them anymore. Hell, the last event was a snoozefest: a repackaged iPhone 5S, a (slightly overpriced) 9.7" iPad Pro and freaking watch bands. Is that the best they can do? Obviously not, but since people like you will seemingly buy anything with an Apple logo slapped on the back and find ways to justify everything they do, they can get away with it and laugh all the way to the bank...

Dude, we get it. In the spirit of being a fair-minded, objective poster, you come off as a apple basher and they can do no right in your eyes. See how easy it is to sling stuff around when someone renders an opinion contrary to your own.

Time will tell regarding Cook's future and I'm glad Apple is not the same company as it was. They needed to change their ways and the vapid fans of SJ have to let go of the past, he is DEAD.

You don't like the company, the whole board gets it. And yes I will buy the products that work for me and that I like. (As an aside, I don't care if apple laughs all the way to the bank, the price of the phone is the price). 50 million of us last quarter, threw our money at apple.

And you should go with a company and it's products that you like. It's obviously is not apple.

 

[tentales]

It's also complete speculation on your part to imply that these conditions wouldn't have existed under Jobs.

Misinterpret all you want. Steve's record vs Tim's is there for everybody to see.
AAPL dropped $40Billion in value today. No speculation needed. Facts.

 

[doctor-don]

When every home has an iPhone (or two), what will THAT decline look like?
Sales cannot continue increasing; they have a limit.

 

[linuxcooldude]

Saturation? How? Apple is only selling 15-18% of smartphones world wide. Android is killing it with 80%+ share. Sure, Apple may make more money on each sell but they don't own 90%+ of the market, therefore it's not market saturation.

Android is an operating system, not a phone. if you compare the iPhone to any single brand of phone they are killing them in market saturation & profit.

 

[BillyMatt87]

Dude, we get it. In the spirit of being a fair-minded, objective poster, you come off as a apple basher and they can do no right in your eyes. See how easy it is to sling stuff around when someone renders an opinion contrary to your own.

Time will tell regarding Cook's future and I'm glad Apple is not the same company as it was. They needed to change their ways and the vapid fans of SJ have to let go of the past, he is DEAD.

You don't like the company, the whole board gets it. And yes I will buy the products that work for me and that I like. (As an aside, I don't care if apple laughs all the way to the bank, the price of the phone is the price). 50 million of us last quarter, threw our money at apple.

And you should go with a company and it's products that you like. It's obviously is not apple.

Contrary to what you believe, I am a fan of Apple but I am willing to criticize them when they make stupid decisions and sadly, they've been doing a lot of that in recent years. I don't want Apple to fall back to how they were in the 90s, but history always repeats itself.

I think Tim Cook's legacy (or lack thereof) will be how he let the company stagnate, deteriorate in quality in some ways and focused more on maximizing the profit margins and the overall bottom line. He's not a visionary or forward thinker the way Jobs was, Apple needs someone like that otherwise we get just another CEO for just another tech company. Apple needs a true leader, someone willing to genuinely carry the vision and legacy of Steve, not abandon it or pull 180s because it won't make as much money. Cook is not the right guy for the job in that sense, I mean his skills are as a bean counter, not dreaming about changing the world, he's just coasting on the success that the dreamer built for him.

You seem to be glad that Apple has changed for the worse in some ways under Cook, as if everything that happened under Jobs didn't matter. He's the reason why they became so successful, you think Cook could've saved Apple from near bankruptcy? Didn't think so. Sure Jobs would be pleased at the overall financial success of Apple, but that's Cook's only area of expertise. I think he would be appalled about how the product lineup got so bloated and out of focus, one of the first things he did as CEO was streamline a convoluted product lineup and now greedy Cook undid that. Steve would've also been disappointed with Cook's decision to fire Scott Forstall, and considering how the quality of the software fell apart (both inside and out), it's no wonder why Scott was as valuable as Jony. Speaking of Jony, Jobs seemed to be the only person that had the balls to criticize Jony when needed. I can't imagine Cook ever telling Jony that a particular design of his looks like ****, Cook most likely has little to no involvement in the development and creation of any of their products, he probably just blindly signs off on anything that's presented to him. Jobs knew when to say no even if feelings got hurt.

Finally, Cook needs to stop saying stuff like "Apple will always be Steve's company" or "His DNA is our foundation" if all he's gonna do is the exact opposite of what he would've done.

I wanna support Apple and root for them, but it's getting harder and harder to do so. I was always the one who wanted all of my friends to go Apple and I was always the one who would think so highly of them and their products. I can't delude myself as some of the hardcore fanatics here, the Apple I grew to love is gone. Yeah, the good times are over and it's hard to accept that but knowing that Apple is capable of doing so much better than they have been in recent years is why it truly bothers me. People like you are why Apple has begun its downward slope, because you've convinced yourself that Apple is incapable of making mistakes and subpar products from time to time. Sure Apple under Steve Jobs wasn't 100 percent flawless, but there was a genuine effort in their focus to make great products to change how we live for the better. That's not evident under Cook and Apple desperately needs its mojo back and I hope they find it sooner rather than later.

 

[I7guy]

Contrary to what you believe, I am a fan of Apple but I am willing to criticize them when they make stupid decisions and sadly, they've been doing a lot of that in recent years. I don't want Apple to fall back to how they were in the 90s, but history always repeats itself.

I think Tim Cook's legacy (or lack thereof) will be how he let the company stagnate, deteriorate in quality in some ways and focused more on maximizing the profit margins and the overall bottom line. He's not a visionary or forward thinker the way Jobs was, Apple needs someone like that otherwise we get just another CEO for just another tech company. Apple needs a true leader, someone willing to genuinely carry the vision and legacy of Steve, not abandon it or pull 180s because it won't make as much money. Cook is not the right guy for the job in that sense, I mean his skills are as a bean counter, not dreaming about changing the world, he's just coasting on the success that the dreamer built for him.

You seem to be glad that Apple has changed for the worse in some ways under Cook, as if everything that happened under Jobs didn't matter. He's the reason why they became so successful, you think Cook could've saved Apple from near bankruptcy? Didn't think so. Sure Jobs would be pleased at the overall financial success of Apple, but that's Cook's only area of expertise. I think he would be appalled about how the product lineup got so bloated and out of focus, one of the first things he did as CEO was streamline a convoluted product lineup and now greedy Cook undid that. Steve would've also been disappointed with Cook's decision to fire Scott Forstall, and considering how the quality of the software fell apart (both inside and out), it's no wonder why Scott was as valuable as Jony. Speaking of Jony, Jobs seemed to be the only person that had the balls to criticize Jony when needed. I can't imagine Cook ever telling Jony that a particular design of his looks like ****, Cook most likely has little to no involvement in the development and creation of any of their products, he probably just blindly signs off on anything that's presented to him. Jobs knew when to say no even if feelings got hurt.

Finally, Cook needs to stop saying stuff like "Apple will always be Steve's company" or "His DNA is our foundation" if all he's gonna do is the exact opposite of what he would've done.

I wanna support Apple and root for them, but it's getting harder and harder to do so. I was always the one who wanted all of my friends to go Apple and I was always the one who would think so highly of them and their products. I can't delude myself as some of the hardcore fanatics here, the Apple I grew to love is gone. Yeah, the good times are over and it's hard to accept that but knowing that Apple is capable of doing so much better than they have been in recent years is why it truly bothers me. People like you are why Apple has begun its downward slope, because you've convinced yourself that Apple is incapable of making mistakes and subpar products from time to time. Sure Apple under Steve Jobs wasn't 100 percent flawless, but there was a genuine effort in their focus to make great products to change how we live for the better. That's not evident under Cook and Apple desperately needs its mojo back and I hope they find it sooner rather than later.

No I am glad Apple changed for the better, at least if you are going to tell me what I said, paraphrase correctly. I don't agree with your point of view and time will tell.