Apple Hits Worst Sales Setback Since 2007, Still Stands Rich As Ever
A day that was much awaited by Apple rivals has occurred. The tech company’s sales and revenue reported a drop down of 16 percent in its recent fiscal Q2 2016. The decline in iPhone shipment has lead to a sales rate of 51.2 million while the company filed 61.1 million last year.Advertisement
The sales expected by analysts in Thomas Reuters have failed to meet their expectation by missing its fiscal second quarter reports that ended on March 26. Moreover, its shares went down by more than 6 percent in late trading. Apple has never declined to this extent in its quarterly revenue in over 13 years, according to Wall Street Journal. The Company’s unfortunate decline lead to a loss of $46 billion of its market capitalization, crossing the total value of companies like Netflix.
Although Apple’s growth in revenue has failed to amaze us this year, CEO, Tim Cook said, “Our Product pipeline has amazing innovation in store”. Cook also said in an interview with Wall Street Journal “It’s a tough bar to hurdle, but it doesn’t change the future. The future is very bright,”
This sales report could indeed be an eye-opener to Apple as Iphone has played an important role in the declining report. The product makes more than two-third of revenue for the company. Also, iphone has been its most innovative and anticipated product to its customers, however, its recent release of iPhone SE has failed to appeal the masses.
The inevitable could be the loss of interest in smart phones. Apple in the recent years has failed to produce gadgets that are convincing in its technology leap and has concentrated primarily on iPhone.
Apple’s financial earning may have come down hard but according to Vala Afshar, Chief Digital Evangelist at salesforce and CNBC’s tweet, this is indeed just a minor setback for the company to overcome in its next release of iPhone. The product is to be announced in September.
Apple has $233 billion in cash. It could buy:
…and still have $18 billion left. $AAPL
— Vala Afshar (@ValaAfshar) April 26, 2016
— CNBC Now (@CNBCnow) April 26, 2016
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