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

maflynn said:
No one is questioning (at least I'm not), the profitability of the iPhone. Its making Apple gobs of money.

No, I think some of the comments are on point. When a company relies on a single product for most of its profit, its akin to putting all of your eggs in a single basket. if something bad happens to that single product, then Apple is in a world of hurt. No company can easily weather a massive drop in revenue, and right now, the iPhone represents 65% of Apple revenue. I'm not saying Apple is doomed, but they need to diversify their product mix. They haven't been sitting on their hands, they've been working on that, but so far, nothing has come close to evening out the product mix and the revenue it produces.
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Like others have said... the iPhone overshadows Apple's other operations. It's simply a monster.

It's kinda hard to "compete" with yourself when one of your products is making $32 BILLION in revenue over a three month period.

But Apple tries anyway. Here is the revenue from Apple's products... in BILLIONS per quarter:

$32 billion: iPhone
$6 billion: Services
$5 billion: Mac
$4.5 billion: iPad
$2 billion: Other

I don't know what you want them to do. They sell an obscene amount of phones... you can't fault them for that.

A company like ASUS sells roughly the same number of computers as Apple sells Macs... but I'm pretty sure ASUS isn't pulling in $5 billion in three months selling computers.

The Mac by itself would still be a Fortune 500 company. So that's a huge product... just not as big as the iPhone. Smartphones sell in much higher volume than computers... so it's no surprise that Apple makes more revenue from iPhones than Macs.

Apple is diversified... they just have one monster revenue product and a bunch of other huge revenue products.

Some companies don't even have a single medium-sized revenue product... let alone multiples. :)
 
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OMg! The End is here! The end is here! Apple is no longer a world leading company in tech! They have failed! Sell! Sell! Sell!
 
Everyone knows what the problem is, but some don;t want to admit it.

Aside from that, Apple's CEO could have probably averted much of that decline by upgrading the MacPro in ANY WAY possible, and it would have helped to upgrade all Macs in the last months, release a monitor that is redesigned, etc.

Sure, those might not stop the fall, but the fall might have evened out. Macs are 10% of their income; not a small amount of revenue.
 
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Lesser Evets said:
Everyone knows what the problem is, but some don;t want to admit it.

Aside from that, Apple's CEO could have probably averted much of that decline by upgrading the MacPro in ANY WAY possible, and it would have helped to upgrade all Macs in the last months, release a monitor that is redesigned, etc.

Sure, those might not stop the fall, but the fall might have evened out. Macs are 10% of their income; not a small amount of revenue.
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100% agreed. In the last few years the Mac lineup feels like Dilbert's Pointy-Haired Boss came up with it.
 
Lesser Evets said:
Everyone knows what the problem is, but some don;t want to admit it.

Aside from that, Apple's CEO could have probably averted much of that decline by upgrading the MacPro in ANY WAY possible, and it would have helped to upgrade all Macs in the last months, release a monitor that is redesigned, etc.

Sure, those might not stop the fall, but the fall might have evened out. Macs are 10% of their income; not a small amount of revenue.
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That's the problem, the fact that they're only 10% is why they're continued to be ignored and treated like the red-headed stepchild... Back in 2008 when Mac's were a much bigger part of Apple's profit pie, Apple used to put the latest CPU's/GPU's in their MacBooks, AND they had a top of the line Mac Pro that not only had the latest CPUs/GPUs, but they were also upgradable. The drek we have now is absolutely pathetic with the rMBP 15 sporting 3 year old CPU/GPU's and don't get me started with the trash can...
 
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You cannot hold Tim Cook up to Steve Jobs' standards. People like Jobs come at best once a generation. The question is who today could have guided Apple to better results. Remember SJ himself turned to Cook twice during his CEO tenure.[/QUOTE]

Steve was not perfect - he made mistakes. Hiring John Sculley was one - Cook as CEO was another.
 
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MacHiavelli said:
When you make products that disrespect your customers, you lose sales. Simple.

Messy and cluttered product lines.

Poor and outdated product specs.

Exploitative upgrade prices.

Terrible marketing.

Glib focus on crass fashion items.

Tacky accessories.

Apple needs to refocus. Now.
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Is that why they made 50b last quarter and 40b this quarter because they did all those things wrong?
[doublepost=1461762870][/doublepost]
Apple Corps said:
You cannot hold Tim Cook up to Steve Jobs' standards. People like Jobs come at best once a generation. The question is who today could have guided Apple to better results. Remember SJ himself turned to Cook twice during his CEO tenure.
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Steve was not perfect - he made mistakes. Hiring John Sculley was one - Cook as CEO was another.[/QUOTE]
There might have been some other mistakes you left out. I agree about sculley though.
 
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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Just want to point out that I used to upgrade every iPhone and iPad... Apple broke that habit for me (thank you Apple)

After getting iPad Mini 2 and iPad Air, the following release (iPad Mini 3) was a slap on the face. No internal upgrades and only added touch ID... That's when I stopped upgrading iPad yearly.

Then iPhone 6S came out, USD was too strong and the price in Canadian dollar got increased again. Having had the experience of skipping iPad upgrade and coupled with base model still 16GB, I skipped iPhone upgrade for the very first time ever as well.

Now having skipped 2 products I may skip the next iPhone again if it is mediocre.

It is very simple to get my interested in Apple again... but Apple needs stop being so greedy. I would love to see base entry storage of 64GB, and all sizes (4", 4.7", 5.5" or whatever for iPhone, mini/air/pro for iPad) being released at the same time with same internals. For Macs, no more 5400 rpm HD! Seriously.

It is this dirty "upsell" tactic Apple's been using that's turning me off badly.
 
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Mac 128 said:
It's already been publicly stated that Jobs was aware of the Watch before he died. In fact, they released the iPod Nano with 17 new watch faces the day before he died, and he would have definitely approved that. Taken as a whole, I'd say that the Watch is still part of Steve Jobs vision, and not necessarily the last. He also knew about the rumored Apple car.

So far, Apple has not been rumored to be embarking on anything that Jobs was not originally part of in some way.
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Please cite evidence (with links) of your assertions, that Jobs was involved with or approved Apple's Watch or car projects.
 
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Lol, Steve did nothing.. I'm perplexed why people still think he was the one that invented this empire.
His real achievement wasn't the iPod, iphone, the pencil the watch or iPad - all those things had been done and they simply copied. All he really did was buy SoundJam and put FUD to the music execs about how Napster was going to make them backrupt. That was his one achievement... along with a marketing dept that created a brand second to none.

Its just marketing...
 
TheRainKing said:
I bet Apple had visions of the Apple Watch taking off like the iPad or something. I still haven't seen a single person wearing one.
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In Atlanta, I randomly see many people wearing them everyday... what shocked me last week was when I saw three employees at the oil change shop wearing them; either they earn more than I'd ever imagine, or they received them as bonuses.
 
Grahamps said:
In Atlanta, I randomly see many people wearing them everyday... what shocked me last week was when I saw three employees at the oil change shop wearing them; either they earn more than I'd ever imagine, or they received them as bonuses.
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Really. The watches are as low as $300.
 
Poochi said:
Just want to point out that I used to upgrade every iPhone and iPad... Apple broke that habit for me (thank you Apple)

After getting iPad Mini 2 and iPad Air, the following release (iPad Mini 3) was a slap on the face. No internal upgrades and only added touch ID... That's when I stopped upgrading iPad yearly.

Then iPhone 6S came out, USD was too strong and the price in Canadian dollar got increased again. Having had the experience of skipping iPad upgrade and coupled with base model still 16GB, I skipped iPhone upgrade for the very first time ever as well.

Now having skipped 2 products I may skip the next iPhone again if it is mediocre.

It is very simple to get my interested in Apple again... but Apple needs stop being so greedy. I would love to see base entry storage of 64GB, and all sizes (4", 4.7", 5.5" or whatever for iPhone, mini/air/pro for iPad) being released at the same time with same internals. For Macs, no more 5400 rpm HD! Seriously.

It is this dirty "upsell" tactic Apple's been using that's turning me off badly.
Click to expand...

Spot on. I feel I'm in the same boat, was very happy to upgrade each iPhone and iPad , the products were innovative enough. Now with so many variations of the product line, and worse , the new Mac not being upgradable, it's not a good time. For me 2005-2011 was was an awesome time for mac products.
 
It seems that everyone I know has an iPhone, but people just aren't upgrading every year or even every 2 years. I know a lot of people with the 5 and 5s. There's just not much innovation for each generation of the iPhone. We're just getting different sized screens.

Apple needs to look into wireless charging, waterproofing, curved glass, no bezels, better battery and not just thinner, thinner, thinner!
 
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