Apple Forecasted to Report First Quarterly Revenue Decline Since 2003

[guzhogi]

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

Is it just me, but was Apple designed as a growth company? Meaning it's expected to grow its gross income & profits every year? The problem with that is it can't sustain growth forever. Not enough new customers, not enough new products, etc. Seems like the iPhone has gotten to its saturation point where everyone who wants one has one, and only buys a new one when the old phone is obsolete/broken. Plus, how many new product lines can Apple really come up with and maintain? There's talk about an Apple branded TV and/or service, and an Apple branded car. What happens if/when Apple releases those and they reach their saturation point? I think Apple (or at least society's perception of it) should transition from a growth company to a sustaining company. For me, not having a record-quarter isn't the end of the world. Heck, even going from $58 billion to $51 billion, not that big a deal in the long term. As long as Apple can hold relatively steady, making steady progress in updated products, we should be fine.

 

[Substance90]

Good. Hopefully revenue decline might encourage them to update some of their products. Once they stop caring about squeezing as many profits from 16GB storage phones and aged tech in their computers, they might consider giving people a bit of value for money.

If they know they'll have revenue decline regardless of what they do, they might stop penny pinching.

The 16GB devices exist solely to squeeze profit out of 64 and 128GB devices, not the other way around. The 16GB iPhone is the least profitable one.

 

[spiderman0616]

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..

You can't be serious. 99% of all comments on this entire website are complaints and criticisms of Apple. There are far more haters here than fans.

 

[PBRsg]

When you get too cocky you make mistakes. Tim seemed to be so focused on the iPhone cash cow, he neglected everything else. He has also quietly been giving customers a slap in the face by gluing down every inch of every product in an attempt to FORCE new sales on repairable devices - instead of creating a reason to WANT to upgrade.

The new rMB is a perfect example of presumptive overreach. Here's an under-powered laptop with only 1 port, that costs much more than it's worth - take it or leave it. I can't think of any other company that could get away with this. That's not to say that it's not a good machine for some people. I just have a problem with mistaking this kind of 'innovation' for arrogance. Everything I love about my MACs was erased in the rMB and this, we are told, is the future. If no magsafe, no ports, under powered, and a horrible keyboard, is all I have to look forward to, I'm sure I'm not the only one who lacks excitement for the next release.

Tim's other huge mistake IMHO is trying to sell iPads as laptop replacements. iOS can't replace MacOS. It just can't. My iPad Pro is a great device, but it's no laptop and never will be. Tim's miss on this, and watch are all part of a credibility thing that is starting to sound too much like desperation.

Combine this with botched launches of unavailable new products over the last few years, software that just doesn't 'work' anymore, and economic stagnation for too many people, and the value is diminished. People pay more for products for the quality, usability, and outstanding customer service. I could be wrong, but taking the headphone jack out of the iPhone is not going to be seen as 'great innovation,' just as a 1 port laptop for $1600 isn't either.

I wish I could say I was excited about the next release of new Macs, but if they're going to be less powerful, have fewer ports, an annoying flat keyboard, further locked down OS, and have so much glue on them they're throw-aways - I'm not running out to buy one just because it's thinner. I really hope Apple changes course because I truly despise Windows10.

I want to see some clarity in Apple's product lines. The iPhone should come in three sizes, released at the same time and have the same exact features. I don't have a clear idea about the iPad Air and Pro lines, or see the reason why the MacBook Retina exists when they can just give the MacBook Air a better screen. Also, at Apple's prices I don't want to see mechanical drives or Lightning ports running at USB 2 speed - everything should be premium. Finally, the soldering down of memory is just a money grab.

 

[pee-jay-bee]

They should bring back Scott Forstall. He seemed to be the closest to having the sort of long range vision that Jobs did. At least to us outsiders.

That's nuts! Scott was all about the hideus iOS 6 skeuomorphic design! Leather and fake stitching... ugh... and the shredder!

 

[doelcm82]

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.

Apple needs to drop everything and concentrate on their core business, which is making great computers. I need to replace my MBP, so they should focus on that, and only that. If they put all their billions into building the best MBP they could, and cut the price drastically, they would sell a lot of them, and that would save the company from financial ruin.

Also, did I mention I need to replace my MBP?

 

[apolloa]

You can't be serious. 99% of all comments on this entire website are complaints and criticisms of Apple. There are far more haters here than fans.

Ah but that's a misconception made by the many on here, you get called a 'hater' just because you don't agree with Apple on one thing! Even though you could have spent thousands on Apple products.

 

[pee-jay-bee]

Bravo.

That is such a pitiful sight. It might be funny if it wasn't so horribly accurate.

The mouse is great design. It's a shame it needs explaining but here goes... they don't want you leaving it plugged in like a crappy old mouse, so they prevent it and force proper use. It would only be a bad design if it took ages to charge up, but it takes minutes.

I also like the battery case but the merits of good design decisions vs aesthetics might take too long.

 

[nvmls]

This is great news, consumers apparently are getting smarter, unfortunately numbers don't seem that substantial to force a short-term improvement on their philosophy.

Either way, Mac September event will be all or nothing for me.

 

[RedOrchestra]

Is it just me, but was Apple designed as a growth company?

ALL tech companies are "designed" as growth companies ... make that ALL companies hope to be growth companies.

 

[r3m1]

Not mention the update cycle on the software side - iBooks is a total turd - iWorks does not exceed SoHo use, don't get me started on Maps, etc. it is a good thing that this happens maybe it will be the wake-up call that Apple needs to become Apple again - sad thing is that we as customers are paying the bill.

 

[RedOrchestra]

Either way, Mac September event will be all or nothing for me.

When you say "all or nothing" do you mean re-jigging YOUR entire line-up of devices?

 

[igorsky]

While your statement "no product can grow forever" is generally true and shows no inside wisdom.
It is also complete speculation on your part playing the what-if game 4+ years after SJ.
Steve had vision and surprised us multiple times. Since his demise, nothing but incremental improvements.

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

 

[DakotaGuy]

This is probably not a huge deal because the corporation can be sustained just fine by the iPhone even if sales drop some, but it does show the danger of being a one-trick pony.

 

[igorsky]

More likely, just blood. I predict Angela Ahrendts will be the first head to roll in a management shakeup. Cue will drop in the pocket, and Ive will retire to jolly ol' England.

Really? After the first decline in almost a decade? With a new phone announcement three months away? Some tough expectations on these forums.

 

[I7guy]

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.

Thank you for a reasonable post. One of the few in this thread.

 

[RedOrchestra]

Some tough expectations on these forums.

You gotta' be able to run with the bulls(hit) on this Forum.

 

[Stella]

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..

Can posters not be critical of Apple - as long as they can back up opinions? The keyword is *opinion*, which is not black and white.

While many people here, like myself, enjoy Apple products, can also see the shortcomings of the company - AS WELL as the good stuff Apple does.

Goto AppleInsider if you don't want to read criticisms.

Its a discussion forum. A discussion forum that only allowed praise for Apple would be exceedingly boring, and non-sensical.

 

[igorsky]

No big deal at all! While you would want Apple to focus more on customers following a bad quarter, often times the opposite is true. One revenue declining quarter is nothing. Two or three consecutive, that might mean something.

Kudos. Had to read three pages of doomsday bull$hit until finally coming across a post that made some sense.

 

[Apple Corps]

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.

"Apple is currently toying..." - that says it all.

 

[stukick]

Not shocking. No innovation or new products equals lower profits. Can't keep repackaging the same tech and reselling it year after year.

 

[ILikeAllOS]

Damn, the Apple apologists are out in full force today!

Face it:

• A keynote that was so uninspiring that the invitation literally included a reference (let us loop you in) to their biggest announcement which ended up just being... a new watchband.
• 5200 RPM hard drive in an all-in-one computer that runs the "worlds most advanced OS".
• Base configuration of 16 GB for $650/750 (depending on screen size) in 2016 just cause they know people will have to pay an extra $100 for 64GB so they can actually use their phone!

 

[radus]

when people like me (long time apple enthusisasts) are going to by Microsoft Surface, Samsung S6 edge and Dell XPS -- there must be something wrong with apple nowadays... but apple is strong, we will see

 

[American Hero]

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

(2)He's guided Apple to outstanding profits, but has not shown that he can take Apple to new heights in the long-term. The Apple Watch is not a worthy successor to the Mac, the iPhone and the iPad, in my opinion.

(3) In the five years that he has been CEO, he has never shown the passion for Apple products that Steve Jobs did. As a result, the public has become less enthusiastic also.

Finally, the area that Apple most needs attention is services. (4)Eddy Cue is not the right man to lead this area, to put it mildly. Apple needs a major culture change to instil the right ethos for making high quality services. It goes against their traditional culture in a fundamental way, and requires strong leadership to overcome resistance in Apple. Tim Cook is not able to give this leadership, nor does he have the headhunting chops to find the right person; he is too nice, and doesn't have the sharpness in this field.

It's time for new blood.

1. One could only hope. The company has fallen off the radar considerably since Jobs' passing in regards to respect and their "wow" factor with their products. I used to get excited when opening up my Mac, iPhone, or iPad... Now it's just like any other device, but priced higher.

2. People are fooled by Apple's outstanding profits. Of course you're going to be more profitable when you put the least amount of tech possible into a phone or tablet year over year, and then have a terrific marketing team brainwash those who watch the events or the non-techies who buy the product at the store. Take a look at the 16 GB storage problem for example---of course you're going to make more profit from selling those devices because it doesn't cost as much to make them, and then at the same time, you sell a 64 GB device for $100 more. Apple doesn't make huge profits because they make good products, at least not anymore, they make huge profits by pinching pennies and focusing on strategic marketing.

3. Tim only likes to show passion for public relations. Tim secretly wanted the public to know about the FBI case, so he could use that as a positive public relations stunt to make Apple look good. Remember how he came out of the closet? (Not that there's anything wrong with living that type of lifestyle). Doing that was an easy public relations stunt to try to make himself and the company look good, and the same idea goes with highlighting women within the company, and also with their "environmentally friendly" promos. Tim has no clue what he's doing, so he looks for PR to make the company look good.

4. I agree but Tim won't fire him for some reason. He fired Scott Forstall, but Eddy Cue gets to keep his job for some reason, even though the services he brings to the table are worse than what Scott Forstall brought to the table right before Tim gave him the ax.

 

[doelcm82]

"Apple is currently toying..." - that says it all.

Yep. Apple previously toyed with the MP3 player market, the mobile phone market, the tablet market, etcetera.