After years of robust growth, Apple revenue declines 12%
No one who follows Apple with any interest should be surprise that after reporting earnings of $10.5 Billion, pundits once again have dusted off the ‘Apple Doomed’ stories again. Did these people really thing Apple’s was going to enjoy double digit growth forever? Apparently so because these bozos were shocked, shocked that revenue and earnings actually declined after 13 years.
Here is the short and sweet story from Apple’s Conference call. It wasn’t pretty compared to previous quarterly reports. Unit sales declined across the main product groups. iPhone sales were down significantly. The iPhone 6S and iPhone 7S Plus did not enjoy the explosive success experienced by the introduction of the iPhone 6 and iPhone 6 Plus. Surely they anticipated that didn’t they? Not by today’s reporting they didn’t.
Apple still sold a whopping 51.2 million iPhones. Though that was ahead of Apple’s own expectations, it fell significantly below iPhone sales of 61.2 million units sold in the year ago quarter. iPad and Macintosh sales also declined substantially. The iMaker sold 10.2 million iPads. That was down 19% compared to a year ago. The sales of Macs which continue to gain overall market share, were still off 9% at 4 million units compared to 4.6 million Macs sold a year ago.
There were quite a few bright spots in the report that will be conveniently overlooked. Apple’s services business was up significantly. The unit reported revenue of $6 Billion, up 20%. The App Store and Apple Music were up 35%. Tim Cook also noted that Apple Pay customers were growing by one million new users each week.
The Apple Doom Sayers are sure to have their fun predicting that it is over for Apple. Not so fast bozos. Apple still has more cash and Cash equivalents than any company anywhere. The company also announced it was both increasing its quarterly dividend and adding $50 Billion more to its capital return program. That not too shabby from a company on the brink of its own doomsday yet again.
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