Apple saw a loss of sale coming to their flagship iPhones in its second quarter 2016. This means it’s going to be a rough year for Tim Cook and his team. Apple iPhone sales are likely to drop first time since the beginning of iPhones in 2007 is what Apple is expected to tell their Investors.
The prediction of the sales drop shouldn’t be surprising for people who have been updated with Apple doings in the last years. The iPhone 6S release wasn’t a huge hit, and they are losing focus and market shares if they don’t change their game. The company reported its first quarterly decline in revenue in 13 years on 26 April 2016.
iPhone sales slowdown is closely related to the CEO change in 2011 when Tim Cook took it over from Steve Jobs, who was the brilliant mind behind Apple’s success. Now iPhone sales are slowing down, iPad has been slumping for two years now.
Tim Cook has said that the problem in iPhone sales loss is in iPhone 6. When they released 2015 flagship iPhone 6 then they won so many new users, and iPhone 6S launch was nothing extraordinary and users have not upgraded their iPhone 6. iPhone 6 was the first iPhone that had larger than 4 inch screen. Apple clients are desperately waiting for September in 2016 when new iPhone 7 comes out. If Apple will nail the launch, they can be back on track with breaking records with iPhone sales.
But against all concerns against Apple iPhone sales numbers, they still generated more profits in 1st quarter than combined earnings of Alphabet Inc. (aka Google), Facebook Inc. and Amazon Inc. It’s heard that Apple investors don’t truly understand the value of users they have, and the profits they can earn from their user base alone.
Can apple come back up stronger than ever? Is the big question. We have to wait and see for that but analysts predict that it’s not going to happen any time soon. To grow into new markets, Apple is pushing into electric vehicles and augmented reality, Apple is also expanding services business.