Apple Profit and Revenue Slide as It Copes with Slumping iPhone Sales

http://www.wsj.com/articles/apple-profit-and-revenue-slide-as-it-copes-with-dwindling-iphone-sales-1477427419

by monsieurpng • 10 years ago

25 18 10 years ago

my123• 10 years ago

The iPhone 7 was released at the end of the quarter, the article means exactly nothing.

Same was true for the iPhone 6S, iPhone 6, iPhone 5S, iPhone 5, etc. Yet this is the first time in 15 years Apple revenues have shrunk year over year.

That means something.

huxley2• 10 years ago

Sure it means something, it means that Apple had a spectacular 2015.

In 2001, Apple had revenues of $5.3 billion and a net loss of $25 million.

2014, revenues of $182.8 billion with $39.5 billion in profit.

2015, revenues of $233.7 billion with $53.4 billion in profit.

2016, revenues of $215.6 billion with $45.7 billion in profit.

Apple's 2016 revenues shrunk in comparison to a peak year but it's still their 2nd best showing ever.

jaitsu• 10 years ago

"Apple sales slump... compared to unrealistic expectations."

Wake me up with some news.

Mao_Zedang• 10 years ago

Phones are a commodity.

samfisher83• 10 years ago

I think the phone market should follow the PC market since the phone is much like a miniaturized PC. However Samsung and apple have been able to achieve high margins. Porters five forces tell us given the competition the margins should erode.

qq66• 10 years ago

But phone operating systems are not.

rplst8• 10 years ago

I think the market for high-end phones and devices is probably starting to saturate. Apple has also been relying a bit too much on planned obsolescence, specifically through software updates.

Iterating over iDevices and essentially making them thinner and thinner or mini versions of them (i.e. the watch) doesn't really speak of "innovation" to me.

Apple's real prowess has been in economies of scale, industrial engineering, and supply chain management. This is how they extract more profit from their devices.

However, that profit is now largely based on the same principles of why high-fashion brands can charge $500 for a pair of jeans or shoes. It's also a bit perilous in the sense that once demand falls for "the brand" then a lot of margin just vanishes off the books.

jason_slack• 10 years ago

I have had my iPhone 6P for over 2 years. I would not be upgrading if my sound button wasn't touchy. I don't see a lot of innovation for my needs with a 7P.

Could customers just be upset with the supply chain issues too? Apple hypes devices. People order. Then the orders take months to fulfill. Customers get tired of waiting and cancel orders?

Example. I ordered at launch. My order failed to complete. I get an e-mail the next day saying that my iphone was held for me, please finish checking out. Estimated delivery October 1 - 15. It is now the 26th and tracking shows it will arrive on Oct 31. A whole month late. Meanwhile I have a nice case here that arrived 1 day over my iPhone order...

Ntrails• 10 years ago

I think the market for high-end phones and devices is probably starting to saturate. Apple has also been relying a bit too much on planned obsolescence, specifically through software updates.

My iPhone 4 had four years of updates provided instantly and at no cost. In comparison to competitors I'd argue strongly that Apple has historically had better support for old models than most.

However. I owned my 4 for a pretty long time, because it did everything I needed (until the home button died). I expect my 6s will last a long time too - probably again limited by a hardware fault. Much like PCs, the improvements get smaller and so the impetus to upgrade regularly drops.

ksk• 10 years ago

Apple absolutely does do planned obsolescence. Apple continuously hammers you with popups to update the OS till you accept. My 4S slowed down to a crawl after I foolishly kept updating the OS. Luckily, I've found a way to block the updates now and hopefully my 6S will give me a much more pleasant experience than my 4S.

angryteabag• 10 years ago

Please open macOS to non Apple hardware. I'd actually buy a license for that.

grzm• 10 years ago

Apple is a hardware company. That's where they make their money. What would be their motivation to open macOS? Do you think that macOS license sales would provide a meaningful offset to the drop in revenues and profits?

Apple Profit and Revenue Slide as It Copes with Slumping iPhone Sales

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