Apple Forecasted to Report First Quarterly Revenue Decline Since 2003

[jayducharme]

I'm not worried about a slight downturn. As others have said, no company can sustain growth forever. Apple is currently toying with other markets to enter and disrupt. They have enough cash to tide them over while they find the next big thing. I am only disappointed that we won't get a hint of the iPhone SE numbers in this report. I suspect they're helping Apple's bottom line. Perhaps someone will ask a question about that and Tim's cryptic response will give us a sense of how they're doing.

 

[I7guy]

People are losing interest in Apple because their products have become boring. Before they were known for making the most beautiful products with the best user experience, but none of those things are true anymore.

With 50 billion in sales the prior quarter people are losing interest? They are going to go out with a spectacular bang.

 

[rfrmac]

If this reveals to be fact this evening it will mark the true start of the Cook era. He has ridden Jobs' products as far as they will take Apple. Now the stage is set & TC truly owns whatever good or bad sales and profits or shortfalls Apple takes in going forward. Will this be a blip or the beginning of a long flatline or hook down? Stay tuned.

As a stockholder & fan I'm nervous. I've never been much of a TC fan & the more I see I think he is a poor match for the job just like the other CEO Jobs hand picked to lead Apple. But I'm hoping for Apple's & my sake he can turn it around. Just the same I pray some BODs are quietly looking over resumes just in case.

Glad to see someone else feels the way I do. Apple has more people and resources than it's ever had before but I see less. I don't care about a car. That's not the "Christmas" I want or need. I do care about improving the products that Apple already has and finding that "next big thing" and the car is not it. I like my Apple Watch, it is a product that most people can use. Apple needs more products like it. We need products "for the rest of us". Apple re-writes its' software products and continues to leave out key features that were in the older versions. And those same features never seem to make it back into the product that it replaced. There professional software has either been discontinued or development has been slow in coming even though Apple knows what the users want and need. It's like Apple likes to start things but never likes to really finish them. They show you the promise but the promise is never kept. They just work on things for a while and then go in a different direction without really finishing the job.

Times change, I know that, but one thing that has not and well not change is pleasing and delighting the customer. I sometimes think Apple has forgotten that at times.

 

[imwoblin]

When one product (iPhone) is responsible for roughly 70% of revenue, decline is inevitable.

 

[Apple Corps]

You posting that opinion in this particular topic implies that you think that's the reason for this decline. Tim Cook has been quoted as saying something along the lines of "We've experienced decline before and we innovated through it." That's all I really need to hear the leader of Apple say.

Cook's talk about "innovating their way through it" is just that - TALK. Show me, don't tell me.

 

[Dave245]

With 50 billion in sales the prior quarter people are losing interest? They are going to go out with a spectacular bang.

These past few days and with the reports about the iPhone 7 and the analysts reactions anyone would think Apple are crippled and going bankrupt, it is a complete over reaction. We simply do not know what the iPhone 7 will be like, the fact that it may still have the same design as the 6 seems to have a few people thinking that Apple have committed the biggest crime. I'm wondering if opinion will change in September when the iPhone 7 is announced and people rush out to buy it, giving Apple yet another record to beat.

 

[citysnaps]

Somehow I doubt it. Steve Jobs wouldn't have launched the Apple Watch in its current form. Ditto the new Apple TV. Who knows how Apple would be performing if Steve were alive, but I have a feeling the product lineup would be different, and that could have a significant impact on revenues.

Imagine if the watch had been a best seller. Or if it hadn't launched last year, but was just gearing up for a launch (in a more useable form) in 2016.

It has been a best seller - consider the first iPhone which sold half as many units in the first year. Also a best seller compared to other watches it's competing against.

The Watch is an accessory, not a major device like an iPhone or iPad.

 

[devinthomas]

The rot at the core is showing.
Cook needs to go.
Ive needs to go.
Apple needs to stop supplying 13 year olds with daft coloured phones and cater to those who still want the best computer.
"Thin" is not the way. Thermal efficiency is the way. Upgradeability is the way. The ability to vacuum out the internals every now and then is the way. Listening to the real customer is the way. Once again making a damn good computer for practical users is the way.
I used to run a video editing workshop with 30 iMacs, the cathode ray case version, and for 5 years students beat hell out of every one day in and out. Nothing ever broke. My own iMac bought 4 years ago has boiled itself into a doorstop and Apple is a by word for overpriced baubles, spin, pie in the sky thinking and straight BS.
Windows all the way from now on.

Brand loyalty. Get them addicted while they're young and you'll have a road to their wallets for life.

 

[Razeus]

Not surprised. We are at peak smartphone. They are so good now days that you don't have to upgrade them as often. I still see people with 5S's when I used to see everyone with the latest phone. Not so much anymore. My 6S Plus is planned to be upgraded with the 8S Plus comes out. I love the 6S Plus.

Besides when you have CEO's like Tim Cook, who doesn't have any vision, you get products like the iPhone SE and 3 sizes of the iPad within 1 year.

 

[samcraig]

"We've taken our profits this quarter and we've made them thinner." In fact, this is our thinnest quarter in over 10 years.

 

[rizzo41999]

Not surprised at all. 2014 sales inflated all metrics.

 

[Apple Corps]

When one product (iPhone) is responsible for roughly 70% of revenue, decline is inevitable.

That is a key point. Apple is in this situation in large part due to their failure in other areas to date. No one has restricted them to the iPhone space.

 

[CharlieY]

Very good. Their last September event was incredibly lacklustre, and especially last March's event that mainly revolved around left overs. (Things that could've been released last year but weren't to avoid cannibalising their own products)

They need a drastic attitudinal shift.

Seriously did not expect this coming from an Apple fan site. Nice to see someone who's honest about the situation (and not trolling at that) for a change.

Hopefully this will mean we will see the kind of breakthrough products we saw when Steve was around. Fingers crossed..

 

[apolloa]

10% that's quote a drop! Not good, I would of thought they would be even or maybe 3% lower.

 

[nt5672]

I feel that Tim Cook's time as caretaker CEO is done. . . . .

One can only hope Cooks time is limited. Cook seems more focused on media attention than taking care of business. Media attention about being green, about being energy efficient, about being man of the year, about human rights, etc. While these issues are certainly important, performance does not improve when you go about them in exclusion to product innovation, product focus, product quality, and product features. When the opening message for a product introduction is about recycling and being green, you know there is a problem someplace.

I think that Cook is trying to be seen as a revolutionary tech genius, which he is not. He should stop trying to be something that he is not and be the best that he can be. Accountants don't belong in the spotlight. Stop with the interviews, magazine articles, etc. and start getting your house in order and making better products. Better products is what made Apple what it is today, not interviews, not being green, and not any of the other diversions.

 

[actinide]

You haven't tried the watch yet? I haven't, but I've heard (and seen) raving reviews about it. It's definitely changing things. And just because they haven't released a new product doesn't mean they are sitting on their thumbs. There's a ton going on behind the scenes that none of us get to see. They are investing hugely, and we'll benefit from their patience in due time.

I have and it is the least innovative. You should try yourself. Posting comments solely relying on reviews is not a smart move. What is the point having a smartwatch, when you cant use it separately from your smartphone. Dumbest purchase ever.

Bold text: That must be the dumbest comment I have ever read. Thumbs! Sadly for me I made time to comment on that.

 

[pward]

Apple seems to be about to undergo something of a reality check...

No company can grow forever, although investors would certainly like them to. Apple's problem is that the iPhone provides 2/3 of their revenue and in that situation declining iPhone sales is not good news. Apple need to figure out why sales are declining and react, or face continuing revenue declines.

Now Apple is in a much, much better place financially than other companies, with huge amounts of cash and the ability to command high profit margins. Also, the forecasted figures are not exactly a disaster; they will still have sold 50 million+ iPhones in one quarter. They will probably meet their financial guidance from Q1 so the results SHOULDN'T affect the share price, although they probably will.

 

[Jakexb]

Very good. Their last September event was incredibly lacklustre, and especially last March's event that mainly revolved around left overs. (Things that could've been released last year but weren't to avoid cannibalising their own products)

They need a drastic attitudinal shift.

Shifting to what?

 

[JungleNYC]

Hate to say it, but GOOD.

I really hope the marketplace will shock Apple into returning it's focus to quality, and stability, instead of "thinness" and "disposable products."

There are just so many bugs in every one of my Apple products. Nothing really works like it should. And instead of focusing on their old mantra "it just works" they've been chasing these idiotic dates and cycles.

They also need to figure out this iCloud insanity. Stop poking your professional users in the eye. And fix ****ing iTunes. Already, jeesh.

 

[PBRsg]

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.

You should have also mentioned the USB 2 speeds on the Lightning ports.

 

[Jakexb]

I have and it is the least innovative. You should try yourself. Posting comments solely relying on reviews is not a smart move. What is the point having a smartwatch, when you cant use it separately from your smartphone. Dumbest purchase ever.

Why does the point of a smartwatch revolve around using it separately from your smartphone? From my experience it's basically a screen and touchpad that you can wear. No one would say "what's the point of an external monitor/keyboard if you can't use it without your mac".

 

[apolloa]

There's nothing to worry about. Innovation is still deeply embedded in Cupertino.

This is a key point, not one mess of a design from a company that has built it's reputation and products on design, but three mess up's! I actually don't know of another mouse currently available that you have to plug a cable into the bottom of it to charge it?

IMO share holders should be holding Apple's board to ransom, it's in their interests after all, push Cook and Ive into getting Apple back on track.

Personally I think the only good recent things they've done are, ignoring the stupid pencil charging method the iPad Pro, Touch ID, and Apple pay.

 

[newyorksole]

In other hand, Apple's inflated success is based on people's expectation. When people expectation on Apple is high, they push the stock value upward and investors made Apple the world biggest company by market value.

When Apple does not deliver the expectations, then it's value will drop. It is natural. Apple has been really lacklustre for past few years. All we see is phones gets bigger and smaller. Added stylus and keyboard to be Surface wannabe. Apple Watch has not much difference with other smart watch. Apple Pay is still in US only.

Yea, if you say one or 2 years are OK, but Apple is not doing so well in past few years. We see competition is catching up quickly and some are suppressed Apple in some areas. If Apple still think their products are the best and still day dreaming about their super high profit, just wait and see Apple repeats its near bankruptcy back in 80s. This time no one can save Apple.

Hmmm I suppose. I think Apple has a lot up its sleeve though. You really can't count them out just yet. They're not stupid and they have loads upon loads of money. This year and next year will be very telling...

 

[Jakexb]

FWIW, I really like the battery case.

 

[newyorksole]

HAHAHA, you made me laugh.. The last time they innovated was in 2010 when they introduced the ipad. Haven't seen anything innovative since then.

PS: think before you submit anything (bold)

The iPad wasn't the first tablet... They were not the first to the party with that product, but they did better than anyone else.

And some people will argue and say that the iPad ISNT innovative because it's basically a larger iPhone.

All I'm saying is that you can't count Apple out. Not yet.