However, about its performance in India, CEO Tim Cook had some good things to mention. And, what an impact it was on Tuesday evening when the company announced its quarterly results…
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This drop in sales is down to high market saturation and lacklustre sales of last year’s iPhone 6S, according to analysts.
As such, Gizmodo says it now “appears that people are finally wising up to the fact that they don’t have to upgrade their phones every year”.
Overall, Apple reported US$50.6 billion in revenue and US$10.5 billion in profit.
Sales in Mainland China fell 11 percent, compared to a year ago when the company’s revenue in the country grew a record-breaking 81 percent. The drop is equivalent to 26% year-over-year. “Apple needs to come up with a radical new innovation or product rather than just the current incremental improvements to existing products”.
To battle this, the firm recently updated their smaller smartphone with the launch of the iPhone SE. That gave Apple a market capitalization of about $579 billion – still the world’s largest company by that measure.
The company is looking at improving iPhone sales in newer geographies.
Cook had his reasons for the slump. This has been the experience in China, the largest market for mobile phones.
A day that was much awaited by Apple rivals has occurred.
Apple may have faced difficulty in managing to keep up the growth in profits and retaining interest in the iPhone, Apple Watch and iPads, but their legacy business of selling music seems to be safe.
Is the Tab market plateauing? . Data and reports suggest why Cook is right in believing so. Though Apple is aiming to capture a share in the smartphone market, the global and homegrown players with their tight hold on the market segments are not going to make it an easy game for Apple. It further predicted that Microsoft stands to gain from this trend as its Windows 10 operating system was positioned to take advantage of the form factor. Sales of the company’s latest smartphones, while significant with 51.2 million models sold, still could not keep pace with sales of 61.2 million from the same period past year.
So, all is not yet lost. However, this was in line with guidance Apple posted in its previous quarter financial results.
Revenue on these products rose by 30 per cent to $2.189 billion. IPad sales fell 19 percent during the first quarter.
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What does the future look like? Apple’s results followed disappointing quarterly reports from Microsoft Corp and Google-owner Alphabet Inc, and microblog Twitter also on Tuesday reported results that missed expectations.
