Ondrej Holzman It was expected. Apple today announced for the first time in thirteen years that it saw a year-over-year decline in revenue during the last quarter. While last year's second fiscal quarter saw $58 billion in revenue on $13,6 billion in revenue, this year the numbers are as follows: $50,6 billion in revenue and $10,5 billion in total profit.
During Q2 2016, Apple managed to sell 51,2 million iPhones, 10,3 million iPads and 4 million Macs, which represents a year-over-year decline for all products - iPhones down 16 percent, iPads down 19 percent and Macs down 12 percent.
The first decline since 2003 does not mean that Apple has suddenly stopped doing well. It is still one of the most valuable and at the same time the most profitable companies in the world, but the Californian giant has paid mainly for the declining sales of iPhones and the fact that it no longer has such a massively successful product besides the phone.
After all, this is the first year-on-year drop in iPhone history, i.e. since 2007, when the first generation arrived; however, it was expected. On the one hand, the markets are becoming more and more saturated, users do not need to constantly buy new phones, and at the same time last year, iPhones experienced a huge increase in sales due to the fact that they brought larger displays.
Apple CEO Tim Cook himself admitted that there is not as much interest in the latest iPhones 6S and 6S Plus as the company registered a year earlier for iPhones 6 and 6 Plus, which offered significantly more new things compared to the previous generation. At the same time, however, the situation can be expected to improve, with regard to both the recently released iPhone SE, which met with a positive response and also, according to Cook, was more interested than Apple was prepared for, and the fall iPhone 7. The latter could record similar interest as the iPhone 6 and 6 Plus.
The already traditional drop was met by iPads, whose sales have been falling for the eighth quarter in a row. Over the past two years, revenues from iPads have fallen by 40 percent, and Apple is still unable to at least stabilize the situation. In the next quarters, the recently introduced smaller iPad Pro could help, and Tim Cook said that he expects the best year-on-year results in the last two years in the next quarter. However, there can be no talk of a successor or follower of the iPhone in terms of profitability.
From this point of view, there was and is still speculation about whether they could be the next breakthrough product, the Apple Watch, which, although they are relatively successful in the beginning, are not yet a financial draw either. In the field of watches, however, they still rule: in the first year on the market, revenues from Apple watches were $1,5 billion more than the Swiss traditional watch manufacturer Rolex reported for the entire year ($4,5 billion).
However, these numbers come only from indirect numbers that Apple has published in recent months, not from official financial results, where Apple still includes its watch in the larger category of other products, where in addition to the Watch there are also, for example, Apple TV and Beats. However, other products grew as the only hardware category, year-on-year from 1,7 to 2,2 billion dollars.
[su_pullquote align=”left”]Apple Music has surpassed 13 million subscribers.[/su_pullquote]Macs, which Apple sold in the last quarter by 600 less than a year ago, also recorded a slight drop, a total of 4 million units. This is the second quarter in a row in which Mac sales have fallen year-on-year, so apparently even Apple computers are already copying the trend of the PC market, which is constantly falling.
On the contrary, the segment that once again did very well is services. Thanks to Apple's ever-growing ecosystem, supported by one billion active devices, revenues from services ($6 billion) were even higher than from Macs ($5,1 billion). This is the most successful service quarter in history.
Services include, for example, the App Store, which saw a 35 percent increase in revenue, and Apple Music, in turn, surpassed 13 million subscribers (in February it was 11 million). At the same time, Apple is preparing another extension of Apple Pay in the near future.
Tim Cook described the second fiscal quarter of 2016 as "very busy and challenging", however, despite the historic decline in revenues, he is satisfied with the results. After all, the results met Apple's expectations. In the press release, the head of the company emphasized above all the success of the services mentioned above.
Apple currently holds $232,9 billion in cash, with $208,9 billion stored outside the United States.
There is nothing to be surprised about Macs, most need a major shift and Intel is waiting.
New graphics, Thunderbolt 3, USB 3.1, new display, ... are also expected.
I want an MBA, with a better processor, better memory, better disk, similar endurance and a better display. They already have it all today, as long as I don't want to put it in one product.
Unfortunately, I'm afraid that the successor is the new MacBook.
yes, me too, and I'm afraid that I'll buy the last MBA and start looking for a replacement at the competition
If you don't care about OS, I'm surprised you're still with Macs. ? If so, I'd go for a MacBook Pro if I were you, but only when there's a new generation.
it depends, and then it looks like a (hard) choice between unnecessary weight and a hackintosh
Do you think the difference is so significant? Let's wait for the new generation, I hope it will be here very soon. ?
Finally. And as long as it lasts, it might talk them through and maybe they will finally start to really perceive the customers.
If the design of iOS and OS X continues to be as amazing as it is after iOS 6 and after OS X 10.9, let them be amazed and I'm not surprised by the aunties at Apple...
Well, we will see. Maybe the golden days of Apple are over.:-((
Of course :-) Of course, the decline started much earlier, they just covered it up with China. Ps: MacBook is not a bad laptop. Fuck it has a relocated price and a camera from the last millennium. Ports and performance can be understood by the target audience.