Apple sales fall for the first time in 13 years
They have been sailing along happily now for a long time and Apple products, particularly the iPhone and iPad have probably been the mainstay of the company for a long time. Some time ago it was the digital music player in the iPod series that many believed were responsible for keeping Apple going when they were in an uphill battle in the pc market, but now it is reported that revenues for the company have dropped by 13% in the second quarter, with sales of iPhones slipping. The sales of the ‘phone have dropped by 10 million compared to the same period in 2015, China is the area responsible for much of this with sales dropping in that country by 26%, much blame being laid at the door of a strong dollar.
Analyst believe that whilst sales in the company’s traditional markets have fallen due to intense competition from Samsung amongst others, Apple have always believed that China would be there, but this market has taken a hit and Apple have suffered accordingly. Many consider that the iPhone is now officially in decline, even Apple themselves said as much three months ago, is the smartphone boom now in terminal decline? In January Apple said that the sales of the iPhone showed the slowest ever increase in orders and they then warned that it would have a serious effect on the second quarter revenues.
What is needed by Apple if it is to get back sales is for another product that will have people queuing to get their hands on it, although the Apple watch is successful, it is going to need more than that, so far there is nothing on the horizon.
So could music come to the rescue of Apple yet again, a 20% growth has been reported in App Store downloads, Apple Pay and Apple Music, history repeating itself perhaps before another blockbuster product comes along, time will surely tell.