Apple revenue drops, Cook is still in charge
April 29, 2016 Leave a comment
For the first time in 13 years, Apple’s reported falling revenue in the last three months to $50.6 billion – a decline of 13%. In the first quarter of 2015, Apple announced record revenue from the iPhone. The iPhone pulls in about 66 per cent of all Apple’s revenue with the remainder from Macs and the App Store.
Compare to last year where apple made $53 billion on goods and services. This was an all time high. Compare that to 1996bwhen Apple lost in excess of $1.5 billion and would eventually get a “loan” from Microsoft to hold off in bankruptcy. It is also Apple’s first revenue decline since 2003 [fell 1%].
As 2015 closed, Apple claimed record growth in China for Q4 thanks to new iPhones. 40 per cent growth in iPhone sales and 71% overall. But it turned into an 11 per cent year-one-year decline in the second quarter in China.
Research company Gartner earlier this month reported the era of double-digit market share growth for smart phones is done as it suggested global 2016 growth at 7% as consumers are also starting to hold onto their older phones for longer.
Apple already has stiff competition from cheaper phone providers in China [where Apple never was big] as well as Samsung and others around the world.
Apple is planning a $2 billion inventory reduction to choke off existing supply of iPhones already out there in order to regenerate demand.
Further problems is that under Steve Jobs, Apple innovated. They were the first with a true smartphone and tablets and were a leader for music players. Under current CEO Tim Cook, they seem to be copying everyone else for features.
In the last few years Apple has had many issues which have come up but rarely existed under Jobs. Among them:
- “AntennaGate” – where holding your smartphone a specific way, reception was bad.
- Numerous issues when upgrading OS X. For example when El Capitan came out, major upgrade issues. Took 2 updates to correct the problems.
- An increasing amount of security issues [where odd things allow access to their iGadgets].
Sales of the latest low-end iPhone 6se hasn’t sold well. The latest iPad isn’t selling because older iPads are still functioning [unlike a smartphone, there is no contract for an iPad – so you don’t have to change it every two years]. Apple doesn’t even want to publically say how well the Watch has sold. Not a good sign.
Remember the MacDefender malware in around 2011? When it first came out, Apple sort of denied it even though about 25% of new support forum comments were related to it. After two weeks they acknowledged the issue and said to go buy an ant-virus software [which was unheard of before] from the AppStore [so Apple gets 30% of what you buy – nice – profiting from others’ misery]. Then only 2 weeks later was an update released to combat the issue.
Selling a base model iGadget reduces revenue as the consumer would most likely buy the full version – particularly if a Fanboi or Fangurl. Jobs never wanted to sell an iPad Mini for that reason [among others].
Apple continues to claim the end of the PC era but continues to sell them. Hypocrites.
Time to dump Cook. Surprised the shareholders haven’t done so by now.