Apple Inc and its investors are in a widespread panic as they experience the longest slump in revenue since the iPhone released in 2007. This steady decline for two consecutive quarters has many investors and analysts unsure of the tech company’s future.
Apple reported a 27% fall in revenue these past two-quarters, largely due to the slowing sale of its “cash cow”, the iPhone. The company’s data shows that while their release of the smaller and more affordable iPhone SE in March did relatively well, it still wasn’t enough to compensate for the slowing sale of their other devices. Due to changes in carrier contracts, and the lack of new features introduced with each new iteration of the iPhone, users are holding onto their older models longer than in the past. Thus causing a slow in sales largely in the U.S and Chinese markets.
The largest booms in iPone sales can be attributed to when the phone first launched, the introduction of Siri, and the introduction of a fingerprint scanner. Since then there has arguably been a lull in design and innovation from a hardware and software standpoint. While on the other hand, their Korean competitor, Samsung, is vying for the smartphone crown with more durable screens, water resistance, a curved display, and albeit less user-friendly and simple, a more capable UI.
Earnings per share have fallen from $1.85 USD to $1.42 USD since a year ago. Net earnings across the whole company have seen a fall from $10.68-billion USD to $7.8-billion in that same time period. While earnings are still there, this is not representative of a trend that keeps investors excited and optimistic.
Apple has experienced a lack of sales across the board as well. Both iPad and Macbook sales have experienced a decline in sales on average of 10-percent.
Some are fairly optimistic for the holiday season when Apple usually announces and/or releases a new device. This year, a new iPhone and an all new generation of MacBook is expected to be released. The hopefully believe that this will help Apple’s faltering earnings. The less than optimistic are seeing the innovations and third party support towards android devices and are speculating the end of the company’s reign of supremacy.
