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Apple Forecasts Third Consecutive Revenue Decline Next Quarter

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macrumors bot
Original poster
Apr 12, 2001
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Apple today reported a negative-growth June quarter in iPhone sales and revenue, and its guidance for the fourth quarter of the 2016 fiscal year suggests that the downward trend is likely to continue through summer.

Apple expects fourth quarter revenue of between $45.5 billion and $47.5 billion, which would be up to 12 percent lower than the $51.5 billion in revenue it posted in the year-ago July-September quarter.

In the fourth quarter, the company also expects a gross margin between 37.5 percent and 38 percent, operating expenses between $6.05 billion and $6.15 billion, other income/expenses of $350 million, and a tax rate of 25.5 percent.

Article Link: Apple Forecasts Third Consecutive Revenue Decline Next Quarter
 

EricTheHalfBee

Suspended
Mar 10, 2013
467
739
No surprise...it's going to get even worse when the iPhone 7 flops badly. This is the weakest lineup Apple has had in a long time. The lineup consists solely of uninspired product updates or products with no updates for a long time.

Thanks for your prediction. I'm going to go and sell all my Apple stock immediately based on the knowledge the iPhone 7 will flop. You saved me so much money. Where should I send you a cut for your advice?
 
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val.79

macrumors newbie
May 12, 2013
3
0
Unsurprising. A company stagnates on ancient technology and their revenue decreases.

Who could have seen that coming??? Everyone but Apple :cool:

  1. Can you name 3 technologies that Apple is using and are ancient ?

  2. Second, the negative growth is partly caused by lower iPhone sales in China. China is experiencing a decline of the spending power and it is the largest market in the world.
 
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milo

macrumors 604
Sep 23, 2003
6,888
518
  1. Can you name 3 technologies that Apple is using and are ancient ?

Look at the mac pro, no update since it was released late 2013. Must be at least three things on that box that are out of date.
 
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SteveW928

macrumors 68000
May 28, 2010
1,764
1,313
Victoria, B.C. Canada
Perhaps they should update their computers. Macs are not an insignificant part or their business.

10-12%ish which on the pie chart no longer looks very significant. And, I'm not sure there the current leadership at Apple is capable of thinking about the big picture anymore. No doubt, there will be some more updates. But, I'm certainly concerned about Apple's future direction regarding the Mac line.

I think we need to just face it that we're not Apple's target market any longer. They used to be a computing company who held user-experience as job #1. Now, they are a higher-end consumer electronics company with a focus on fashion who holds profit-margins as job #1.

Thanks for your prediction. I'm going to go and sell all my Apple stock immediately based on the knowledge the iPhone 7 will flop. You saved me so much money. Where should I send you a cut for your advice?

See my paragraph above. So long as they create reasonably good products and can keep their profit margins high, they'll do OK as a company. But, as they keep losing their focus on user-experience, they'll eventually lose their brand reputation and user-base. It's not going to happen over-night, but we're talking trends and long-term here. (BTW, I've been an Apple evangelist for around 30 years now, and *would* have been telling you to buy AAPL in the mid-90s, if that tells you anything. I'm *MUCH* more worried about them now than I was back then. Take that for what it's worth.)
 
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mi7chy

macrumors 604
Oct 24, 2014
7,335
8,282
An issue Apple created for itself betting its sales on one product, the iPhone, which it let stagnate with an ugly design that can't even compete with devices sold in China's back alley.
 
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SteveW928

macrumors 68000
May 28, 2010
1,764
1,313
Victoria, B.C. Canada
Look at the mac pro, no update since it was released late 2013. Must be at least three things on that box that are out of date.

Well, and the hardware is actually still pretty good (though, several of the lines certainly could be meaningfully updated at this point). It's the software quality and overall direction of the company I'm concerned with.

Even though he walked it back a bit, I think Cook's comments about the iPad Pro's ability to replace PCs was telling about Apple's thinking from the top. I think the Mac is kind of on the cutting table... it's just a matter of when.
 
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C DM

macrumors Sandy Bridge
Oct 17, 2011
51,388
19,428
An issue Apple created for itself betting its sales on one product, the iPhone, which it let stagnate with an ugly design that can't even compete with devices sold in China's back alley.
Ugly design that so many people have been buying and liking?
 
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