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Fiscal quarter report shows decrease in sales at Apple Inc
Posted on: 27/Apr/2016 3:59:05 PM
Apple Inc. has posted its first ever decline in iPhone sales. The company has also said that it has had a drop in revenue for the first time since 2003. According to reports, the sales have dropped by more than a quarter in China. China is its most important market after the US. The forecast for the next quarter’s global revenue also looks bleak.
Apple’s shares have fallen by about 8 percent. For the first time since February, shares went below $100. Apple, however, is not alone. Google owner Alphabet Inc., Twitter and Microsoft Corp. have also posted less than happy quarterly reports.
In its second fiscal quarter, Apple has sold 51.2 million iPhones. The same quarter last year saw sales of 61.2 million.
Speaking about this, a senior analyst said, Apple needs to come up with a radical new innovation or product rather than just the current incremental improvements to existing products. This is the only way in which it will reinvigorate sales growth.
Apple officials have said, The success of the iPhone 6 (last year) had set a difficult bar to beat in the second quarter. The iPhone 6 is an anomaly. (But) the smartphone market was not growing, reinforcing wider concerns of saturation. The iPhone 6S was driving customers to replace phones at a much lower rate than the 6. I don`t mean just a hair lower; it`s a lot lower. If we`d had the same rate on 6S as 6, it would be time for a huge party. The future of Apple is very bright. Our product pipeline has amazing innovations in store. (We are) raising its capital return program by $50 billion through a $35 billion increase in its share buyback authorization and a 10 percent rise in the quarterly dividend.
Analysts have said that the iPhone SE has a strong demand. They say, Although sales of the phone were not captured in the second quarter, the device is off to a strong start, particularly in emerging markets. The situation right now around the world is that we are supply-constrained. The demand has been very, very strong.
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