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Apple Reports First Year-Over-Year Revenue Decline Since 2003: $10.5B Profit on $50.6B in Revenue

maxsix said:
No surprise here. Apple's narcissistic mentality clouds their ability to see clearly. Believing their own hype, they were destined to this fate. Once convinced they were invincible, the slap of reality nows stings their face.
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I don't think anyone believes a company can grow their sales forever... Apple included.

It was bound to happen sometime. The key is how they react to it.

I'd also be curious to know how the rest of the smartphone industry is doing. Is Apple the only company who had a YoY decrease in unit sales this quarter? Seems odd... but could be true.

iPad sales are down... but ALL tablet sales are down.

Mac sales are down... but ALL computer sales are down.

This may be the first time Apple has dealt with this in 13 years... but it has been happening to everyone else already.
 
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MH01 said:
The iPhone 7 better be more than the leaks are suggesting, with huge dependency on your one product, people are expecting more than just incremental bumps. Apples main problem is now that Processing power is not an issue, and the US dollar is too strong. Simple your existing iPhone will last a few good years and be very fast, and a replacement is too damn expansive to upgrade regularly
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Apple's new reality. It looks like next year's iPhone will be the one to turn things around.
 
if your a shareholder like me, you're praying for:

- a new apple watch that reinvigorates the market
- an apple tv subscription service
- apple car integration, not apple car
 
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Bought shares for Apple back when it was at 113$ per share and though it will be going up about a year ago.

Now, when it hits that again (hoepfully), will sell it right away.
 
They sold less iPhones but profits aren't bad at all. They have high margins on their products and that's really important. Upgrade program will help them sell more phones in the future, and bind customers to their platform. I wouldn't be worried if I were a shareholder, they're still strong and make huge profits.
 
From everything I'm hearing, the next iPhone at the end of this year is not going to do well either, minor redesign and drop the headphone jack = even less of a reason to upgrade.

Everyone here seems to be saying this, and it won't be till the NEXT iPhone, is about 18 months time will there really be something worth upgrading to and sales may get a spike.

What do you think of this theory ?
 
recoil80 said:
They sold less iPhones but profits aren't bad at all. They have high margins on their products and that's really important. Upgrade program will help them sell more phones in the future, and bind customers to their platform. I wouldn't be worried if I were a shareholder, they're still strong and make huge profits.
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I am a shareholder, and I'm a little worried. Only because I don't know the future.

On the other hand, my investment strategy has always been to buy when I'm a little worried. It doesn't always work out in my favor, but over the last 15 years it has earned me a lot more money than it has lost me.

If the market opens and AAPL is trading as low as it was after hours, I'll add a hundred shares to my position. I just put in the order.

The dividend is not the best, but it's nothing to sneeze at. If it takes a while for Apple to hit new heights, I can wait.
 
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So, the bleeding comes from iPhone and Mac products. I guess nobody reading these forums regularly feels surprised by that.
 
Piggie said:
From everything I'm hearing, the next iPhone at the end of this year is not going to do well either, minor redesign and drop the headphone jack = even less of a reason to upgrade.

Everyone here seems to be saying this, and it won't be till the NEXT iPhone, is about 18 months time will there really be something worth upgrading to and sales may get a spike.

What do you think of this theory ?
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I'm not expecting a lot from this year's iPhone, but I'm currently using a 6 plus, so I'll probably upgrade anyway. There will be some changes. I'm interested in the dual lens camera, so if those rumors pan out, I'll definitely spring for it. I'm looking forward to using 3D touch and Live Photos (hopefully in 1080p mode, rather than 720p).

If Apple does something game-changing next year, I'll make that decision next year.
 
applezulu said:
Why can't people understand trend lines? Look at the big chart in the beginning of this thread. The only thing that Q1'16 is less than is Q1'15, and on the scale of what's on the chart, it's not less by much.

Steve Jobs was great. He died in October '11, and had a diminished role at Apple for a year before that. Look at that chart again. The truly massive growth at the company kicked in during Tim Cook's tenure. Surely Jobs' legacy is huge, but you can't look at that information and conclude that the growth is all Jobsian inertia, and Cook's just been running the place into the ground.

Nothing lasts forever, but the data here is not indicative of a company in freefall. Far from it.
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One of the best comments on this thread, thank you for using common sense. Personally I think because the iPhone 6 sold so well it was always going to be difficult for Apple to continue to beat it. Even with the decline Apple are still making money and they are still making ground, 13 million subscribers to Apple Music, the Mac is growing while the PC market as whole is shrinking and Apple Watch is (according to reports) the most sold smart watch on the market. All in all I'd say Apple are doing great, Tim Cook is not Steve jobs, he has a different style and so he should otherwise he would just be living in the shoes of a dead man.
 
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I would not worry about Apple's future, I think they will be growing very soon again, but this should be a good warning to start innovating again, offer innovative phones and good computers. Can't keep selling slow computers, with buggy OS and completely unreliable software like FCPX. It's time to wake up.
 
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doelcm82 said:
I'm not expecting a lot from this year's iPhone, but I'm currently using a 6 plus, so I'll probably upgrade anyway. There will be some changes. I'm interested in the dual lens camera, so if those rumors pan out, I'll definitely spring for it. I'm looking forward to using 3D touch and Live Photos (hopefully in 1080p mode, rather than 720p).

If Apple does something game-changing next year, I'll make that decision next year.
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I also have the iPhone 6 Plus and intend to get the iPhone 7 Plus, a few people I know have the iPhone 6s and the Live Photos feature is great, if you take a lot of photos at memorable occasions such as birthday parties, holidays and so on you will use it. 3D Touch I also found (when I used my friends) to be helpful it saves a lot of time when reading emails, texts and so on. It's not a massive game changer but it is a nice feature.
 
Dave245 said:
I also have the iPhone 6 Plus and intend to get the iPhone 7 Plus, a few people I know have the iPhone 6s and the Live Photos feature is great, if you take a lot of photos at memorable occasions such as birthday parties, holidays and so on you will use it. 3D Touch I also found (when I used my friends) to be helpful it saves a lot of time when reading emails, texts and so on. It's not a massive game changer but it is a nice feature.
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Yep. I have a 3 1/2-year-old, an almost one-year-old, and two six-month-olds. I figure I'll get a lot of use out of Live Photos.
 
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Funny how some people still say Apple is doomed.

Those numbers are still CRAZY high and profit is good. 53 quarters in a row with UP UP UP UP - A little down is okay then.

And we all know why... What we bought 2-6 years ago, still looks excactly the same. They must reinvent again if they wanna go up again. MacBooks, iPads, iMacs... Hardly any design changes over the last MANY years. And the new MacBook is a toy that hardly can do anything.

People must be given a reason to buy something new... ;-)
 
PizzaBoxStyle said:
I was listening to a somewhat recent episode of Accidental Tech Podcast, and John Siracusa was talking about all of this frustration and griping that's been going on over the last year or so. He presented it as a sort of generational thing, like the idea that there are "generations" of Mac users and that now the after-SJ-returned switcher generation (and probably pre- too... though I was the former) senses things shifting and weakening, but the after-iOS-released generation sees no problem in the direction or trajectory of things. It's an interesting angle, but I agree, it IS different now. Exactly the sentiments I have been slowly coming to terms with myself.
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It's only a matter of communication. Once there were enthusiasts collecting magazines (PAPER!!!) and now we have DJ's showing off Apple Watches in clubs to look cool. The latter being obviously smarter than the former and explaining how 5400 rpm disks are a better option and don't diminish user experience with Apple ecosystem.
"iOS generation" lowered the bar of expectations.
 
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Rogifan said:
Man this guy just talks out of his rear end but knows that every stupid rumor site will publish his stuff as though it's the gospel. There's not one thing in this research note backed up by facts.
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After being outraged in the Ming-Chi-Kuo Thread about his pessimistic predictions for 2016 certain forums members are 'surprisingly' absent in this thread after the latest :apple: numbers were made official.
 
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Keniutek said:
Gross margin 39.4%, all i wanted to know. Wayyy to high, damn bastards...




;).
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It won't last. They have peaked on margin performance - they won't be making as much margin on iPhone SE - and increasing competition, lack of innovation, combined with increasing product saturation means that their pricing model will start to evolve to the next phase.
 
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