Apple delivers fewer iPhones for the first time and records less sales
As expected, Apple shipped fewer iPhones in the past quarter than in the same quarter last year. As a result, turnover is also lower. It is the first time since the introduction of the iPhone in 2007 that Apple has recorded no growth.
Apple shipped 51.19 million iPhones in the quarter. That is more than 16 percent less than in the same quarter last year. The decline also results in quarterly revenue that is significantly lower: $50.6 billion, compared to $58 billion last year. Deliveries of the new iPhone SE have not yet been included, the published quarterly figures cover the period between December 26, 2015 and March 26, 2016. The new small 4 “iPhone was released at the end of March.
That a decrease in the number of delivered iPhones would be reported this quarter was expected, among others by Apple CEO Tim Cook himself. The decline in sales is no surprise either. Nevertheless, the numbers are historically striking. It is the first time in 13 years that Apple has recorded a decline in its sales. Since 2003, the company has consistently recorded an increase in sales in its quarter-on-quarter comparisons.
Despite the decline in deliveries and sales, Apple is still making significant profits. Quarterly profit was $10.5 billion. That is less than a year ago, when it was still $13.6 billion.
Again, Apple also shipped fewer iPads and Macs. The deliveries of tablets in particular have been declining for years and have continued to do so. Apple delivered 10.3 million iPads, more than 18 percent less than a year earlier. 4 million Macs were shipped last quarter, up from 4.7 million a year ago. Shipments of iMacs and Macbooks thus fell by 13 percent. Such a decline was last seen in 2013.
Many analysts had expected that Apple would already note a drop in the number of iPhones delivered when the quarterly figures were presented in January. However, that turned out not to be the case; Apple shipped 74.8 million iPhones that quarter. Slightly more than the 74.5 million from the same quarter a year earlier. However, those figures made it clear that the big growth at Apple is now really over and the new figures confirm that.
It is expected that Apple will again show decreases in the number of iPhones delivered in the coming quarters, which will have an impact on sales. Apple says it expects revenue of $41 billion to $43 billion for the coming quarter. A year earlier, that was $49.6 billion.
According to the Japanese business newspaper Nikkei, Apple has reduced production of iPhones because the company is said to be out of stock. Analyst Ming-Chi Kuo, who has a good reputation when it comes to Apple forecasts, expects that in 2016 there may be fewer iPhone sales than in 2014.