The company’s total revenue dropped 14.6 per cent in the third-quarter ended June 25, also declining for the second quarter in a row.
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The prediction isn’t that far of a stretch, considering current models already have biometric, fingerprint technology.
According to the Cupertino-based tech giant, 40.4 million iPhones were sold in the quarter, compared with 47.5 million in the same period of 2015. The sales slump has stoked concerns about whether the tech leader can continue to deliver profits at the level Wall Street has come to expect. With a universe that large, “when people are tied to an Apple ecosystem where everything works together, they are more likely to buy more things that are part of Apple services”, says analyst Tim Bajarin, of Creative Strategies.
“Samsung and Huawei are much more competitive now versus a year ago and the Chinese economy is not doing well at all, all potentially contributing to the decline”.
Apple Inc’s iPhone sales fell for the second straight quarter, although the 15 per cent drop was less than feared.
Maestri projected the gadget’s average selling price to rise in the September quarter.
The iPhone makes up for around two-thirds of Apple’s sales and accounts for even more of its profits. That could lower its revenue in the short term, but experts say Apple benefits in the long run if more developers adopt a sales model that requires consumers to renew every year – since Apple gets a slice of every renewal fee.
“It’s opening the door to customers we weren’t reaching before”, he said. That segment produced almost $6 billion in sales – more than Apple pulled in from quarterly sales of either iPads or Macs.
Apple’s iPhone lineup includes the iPhone 6S and 6S Plus, as well as the smaller and cheaper iPhone SE.
If all goes according to plan, we’re now about a month and a week away from seeing Apple’s next-generation iPhone 7 and iPhone 7 Plus get official. While it doesn’t break out sales figures for the Apple Watch, the company said revenue in its “Other Products” segment, which includes the watch, fell 16 percent in the quarter.
Apple makes money from online services by taking a percentage whenever users pay to download a song from iTunes, buy an app from the App Store or subscribe to a streaming service like Apple Music.
Apple nearly maintained its gross margin at 38 percent compared to 39.7 percent in the year-ago quarter.
“It’s a great business because it is recurring in nature and more linked to our installed base”, he said.
India was one of the rare bright spots, with 51 per cent growth in iPhone sales, as Apple expands into emerging markets.
Apple CEO Tim Cook said that India is one of its fastest growing markets.
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Up to Tuesday’s close, Apple’s shares had fallen about 8.2 per cent since the start of the year. Shares rose 7 per cent to US$103.47 in after-hours trade following publication of results.
