Technology

Poor results from Apple: Why the iPhone fall 16%

poor-results-apple-iphone-fall-16-percent

For the first time in 13 years, Apple’s revenue is falling. The decrease is consistent and it is mainly due to a decline in sales of equipment, that is to say the iPhone and iPad.

In detail, Apple sold 51.1 million iPhones in January-March against 61.1 million last year. Inevitably, as the brand smartphone is the first source of income of the group, the results are accordingly decreasing. Income is thus 32.9 billion against $ 40.3 billion in 2015.

The iPad sales are also sharply lower, even if the change of the date curve several quarters already, and Mac sales continue their fall. But the fact is there, the goose egg gold ?? has the lead in the wing.
This is important information, but do not oversell the because it was expected. Expected even to the point that Tim Cook, Apple boss had already warned, explaining that sales “iPhone would decline over the quarter.”
In case the Asian market. Chinese and Hong Kong especially who knew far the strongest growth, but which are now mature. That is to say that telephone renewals are less frequent and that demand is weaker in this area, with the exception of Japan.

So the pendulum movement occurs and the group will have to identify new growth drivers. First multiplying its product with cheaper phones, targeting other markets. But it may be difficult to reverse.

Apple put on services with Apple Music that displays success stories. Incidentally, the group took advantage of the publication of its results to announce that it held 13 million subscribers Apple Music its streaming service fee against 15 million subscribers for Spotify, we see what Apple wants to become leader area . But these revenues remain low in relation to the whole.

But the finding is ultimately simple, Apple will have to find another way to generate strong growth. The Apple Watch will not be the expected relay or touch pads. So we are not going to fall into the ease and predict the end of the brand, we are reminded that they are sitting on $ 200 billion of cash, but the group is looking for several months for new locomotives, and when we do not find them it can only be logical and rational and face reality. This is ultimately what Apple. Gage brand to find a new hit or not.

One thing is certain, Apple is in a position in which the group can afford to do many tests before finding its new pearl. It may therefore come see depending also patience of shareholders.

About the author

Paul Morris

Paul Morris is an entrepreneur, consultant and author. He is an advisor at Xpert Automation, a tech-based business incubator focused on scalable startups, and founder of ContentFy.

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