Don’t say they didn’t warn you. Apple posted a year-over-year decline in revenue today, the first time the company’s failed to grow its business in 13 years. It brought in $50.6 billion in revenue for the second quarter of 2016, and $10.5 billion in profits. That compares with $58 billion in revenue and $13.6 billion in profits during this period last year, a drop of 13 percent for the revenue.
Apple isn’t doing badly, it is still one of the most valuable and profitable companies in the world. But it hasn’t found a new blockbuster product to pick up the slack as iPhone sales have slowed in many parts of the globe.
All product categories are down too – iPhone down 16%, iPad down 19%, Mac down 12% – but obviously, they’re still selling an amazing number of each of these. No, Apple isn’t doomed – anyone who says so based on these numbers is an idiot – but it does show that Apple has been unable to find the ‘next big thing’ after the iPhone (for now!).
Um, no, smartphones have just reached the point when they are good enough and a 12 month upgrade cycle has become worthless if your smartphone is less than 36 months old. The market has become saturated and flatlined. PCs reached this point roughly five years ago.
I don’t expect a next big thing any time soon, unless we’re talking about the merger of PCs and smartphones but technology is not yet there.
Edited 2016-04-26 21:24 UTC