Apple – Fallen Too Far From Its Tree? by Daniel Frye

Wow the tech giant Apple has seen its first waver in sales since 2003, that’s 13 years of growing profits year on year.

 BBC News Reports:

Apple reported a 13% drop in its second quarter revenue on Tuesday as sales of iPhones slipped.The technology giant reported quarterly sales of $50.56bn (£34.39bn) down from $58bn last year – the first fall in sales for the company since 2003.

Apple sold 51.2 million iPhones during the quarter, down from 61.2 million in the same quarter of 2015.

China was a particular weak spot – sales there fell 26%. Results were also hit by the impact of a stronger dollar.

Apple shares fell 8% in after hours trading. Its shares have fallen close to 20% over the last twelve months.

Apple’s chief executive Tim Cook said the company performed well “in the face of strong macroeconomic headwinds”.

So looking at all the facts, we are still talking about a very successful company valued at $651.50 billion dollars. So this drop in the second quarter of $7.5 billion is nothing right? WRONG!

iphone 7
The iPhone 7 – when will it stop?
This drop represents the challenge that every great tech giant will face eventually, the masses are starting to lose their rose tinted view of this ‘hero’ brand. Seeing that they can manage with the iPhone 6 and they might not need the iPhone 7, 8 or 9. The all powerful Apple, wasn’t all powerful a couple decades ago, there was a little company called Microsoft that everyone said was the ‘god’ of the tech world, look how quickly the tables turned. In 1999 Microsoft was worth in the region of $620 billion, now it’s only worth $290 billion (that’s a lot of billions less).
So Apple bosses aren’t sitting in their big offices laughing at the last set of results saying ‘well we still made $50.56bn in the last quarter’. No they are probably hitting the ‘code red’ button and getting developers, marketers, consultants and every kind of inventor in to solve the problem of the ‘next big thing’.
The iWatch – a tremendous disappointment to Apple
The Apple iWatch was a flop, not even worth the electronic ink I’m typing with and Steve Jobs has gone leaving a huge whole in their ingenuity, so this is the first tremor in their potential decline. There are rumours that Apple will go into the automotive industry and invent the ‘iCar’ which to be honest sounds amazing but as Apple could probably afford to buy Ford or GM Motors, why spend money developing such technology when it’s probably already out there.
Could this be the new iCar? Let’s hope it has a good battery life!
Basically Apple needs to rethink quick, even though they are still the no. 1 tech giant, they know as well as anyone that ‘all good things must come to an end’.

 Signing out, Daniel Frye


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