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Apple just came out with its second quarter earnings for 2016 which will go down in history as being the first quarter in over a dozen years (13 to be precise) that its revenue failed to grow. While that might still be seen as just a minor blip in the greater scheme of things, the fact is, the Cupertino giant currently is devoid of a blockbuster device that can channel in some big-time resources.
While the iPad continues to dominate the tablet space, its demand has been continually on the decline for some time now. The same goes for Macs as well with the iPhone being the latest to join the ranks.
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To present the above in figures, Apple reported quarterly revenue of $50.6 billion and the net profit of $10.5 billion, both registering a dip over revenues of $58 billion and a net profit of $13.6 billion reported in a year ago period.
Also, its 51.1 million iPhones that got sold during the quarter, down from 61.2 million sold during the same period a year ago. Mac sales stood at 4.03 million units, which again is a decline over the 4.56 million units sold in the year-ago quarter. Also, while its 12.6 million iPads that got sold during the year-ago period, the same this year has slumped to 10.25 million.
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Apple hasn’t revealed how many of its Apple Watch sold though the fact is; it never rose to the level of being a mainstream gadget of the likes of the iPad or the iPhone even after almost a year of being in the market.
Sales were also down in China even though the region fuelled stupendous growth during the last year and a half. Interestingly, belying international trend, sales of iPhone rose 56 percent in India. Of course, that hasn’t gone unnoticed with the Apple boffins with CEO Cook comparing the region to what it was in China about 7-10 years ago. Needless to say, the company has already committed to doing all that needs to be done to further bolster sales in India, which includes tying up with carriers or engaging with retailers and so on.
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However, Apple still has the comfort of a huge $233 billion in reserves which means plenty of room for the company to maneuver and regain its composure. It already is pumping huge sums into segments such as virtual reality and electric cars, both being seen as the next big money-spinner.
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- Compatible Space: This electronics organizer bag features 2 zippered mesh pockets fits phones, standard power banks, 4 elastic loop pouches for small items, 2 elastic loop pouches for wireless headphones and small chargers. Elastic loops for phone charging cable. And specific slots for SD cards. Please check the size to ensure it meets your needs
- Lightweight Travel Accessories: The size of the electronic organizer travel case is 10.6" L x 7.5" W x 1.2" H, Compact but substantial size fits your intended bag or space. Suitable for traveling use and daily organization
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Apple also reported stellar performance with its Services segment that comprises of apps, media, and Apple Pay. While the segment as a whole reported 20 percent jump in revenue over last year, App Store reported a 35 percent rise in revenue. The company also stated its Apple Music now boasts of 13 million paying users.
Overall, Apple might be facing a bump right now though the story is far from over.
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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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