In the wake of the declining sales of iDevices like iPhone, Mac, iPad and Apple Watch, Apple’s year-on-year revenue has fallen for the first time since 2001.
The Cupertino-based company is set to announce its fiscal Q4 (calendar Q3) earnings today. As expected, the news is not going to be too good.
Apple’s Revenue Declined Year-on-Year for the First Time Since 2001
“Overall, analysts are expecting Apple to post $47 billion in revenue, down from $51.5 billion a year ago, and earnings of $1.65 per share.” Re/code.
Re/code expects the quarterly revenue to be $47B; primarily based on around 45M iPhone sales, 5M Macs and 8.5-9M iPads. Apple had also expected the quarterly revenue to be around $45.5-47.5B.
Due to the third consecutive quarter of year-on-year fall in revenue, the total revenue for the 2016 fiscal year is said to be around $215B; which is 8% decline as compared to the last year. Hence, it’s Apple’s first year-on-year decline in revenue since 2001.
“Apple is clearly benefiting from Samsung’s Galaxy Note 7 problems, but it remains unclear just how many Note 7 buyers are gravitating to the iPhone rather than choosing a Galaxy S7 or other Android device.”
Owing to the unfortunate discontinuation of Samsung Galaxy Note 7, Apple has been benefited the most. With much better response from fans, the latest iPhones have successfully passed the acid test. Despite having more than two-year-old design, the smartphones have fared better. However, the sales haven’t been too high to wrest the declining sales.
Mac sales have also been on a huge decline recently. They have declined by almost 11% from the last year.
Hopefully, with the introduction of new Macs which are set to be unveiled this week on “Hello Again” Mac event, and the better response of iPhone 7 may change Apple’s fortune in the next quarter.
A number of analysts believe that iPhone sales will fare much better in 2017 thanks to the arrival of iPhone 8, which is expected come with a radical design.