• Cryptocurrency
  • Earnings
  • Enterprise
  • About TechBooky
  • Submit Article
  • Advertise Here
  • Contact Us
TechBooky
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Home Enterprise

Apple’s 13 Year Quarterly Growth Ended Yesterday As iPhone Sales Cool But Revenue From Services May Salvage The Situation

Paul Balo by Paul Balo
April 27, 2016
in Enterprise, Gadgets
Share on FacebookShare on Twitter

Yesterday was another reporting season but a lot of analysts were particularly watching Apple perhaps because there was a report in December that suggested that 2015 could be the year that iPhone sales could peak.

Apple released it earnings report and you can see a copy of it here.

So what happened yesterday?

First it’s not all bad news for Apple but in line with expectations, Apple’s 13 years of  continuous quarterly revenue growth came to an end yesterday. Revenue dropped  13 per cent as iPhone sales fell.  The second quarter revenue of $50.6b/10tr Naira/5tr KES was down $58b/11tr Naira/5.5tr KES in the same period last year. Net Income was down to $10.5b as the company forecasts that the third quarter sales will drop even further to $41b-$43b when compared to $49b last year. Another key point to note is that 51.2 million iPhones were sold within the same period  which also represents a 16% drop from the same period last year and at the time of the report from Apple yesterday, their shares had dropped by about 7%.  Rival smartphone makers who popularly use Google’s Android are gradually eroding Apple’s dominance even in the United States where nearly half of the smartphones sold are iPhones. This comes as these competitions offer more affordable alternatives to Apple’s products. This may have prompted Apple to drop the cost of their latest product iPhone SE.

bloomberg iphone dataZe

The results besides the fierce competition from competitors was also as a result of the slower growth in China as seen in the chart above. Apple has a  very huge market there and is considered Apple’s second most important region.

The Apple CEO has described the results as a pause and not a permanent change. The new iPhones went on sale late in March  to have any major impact on the quarterly results.

Apple shifts focus

As devices (iPhone and iPad) post disappointing results, Apple sees a ray of hope in services from iTunes to the App store. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices” said CEO Tim Cook. Apple Music streaming service now has 13 million paying customers up from 11 million in February. Spotify which is Apple Music’s main competition now has about 30 million customers even though the Apple’s streaming service is less than a year old since it was launched last year June. Revenue from Apple’s service now stands at $5.99b/1.1tr Naira/550b KES which represents a 20 per cent year on year increase. “Apple Pay is growing at a tremendous rate,” said Tim Cook. With this, Services represent Apple’s second largest revenue source just behind the iPhoe but above the Mac and iPad.

Impact of Legal fight with the government

Apple was embroiled in a legal battle with the FBI over unlocking an iPhone 5c that belonged to an alleged terrorist. The FBI eventually succeeded without Apple’s help after paying about a million dollars to acquire the software to do this. The FBI agreed though that it was still very difficult to break into newer iPhone models. This could have implications on the overall security of Apple’s products which have been deemed practically impenetrable until now. We are yet to see the impact of this on the overall sales of Apple products. In any case, it took the FBI what a private citizen may not be able to afford to break into the device.

Apple has over a billion active devices. I guess analysts will closely monitor the quarter 3 results and when they are out, we’ll bring it to you.

Related Posts:

  • Apple-logo
    Apple's Revenue Rises, But Misses iPhone Sales…
  • Apple-logo
    Apple’s Q4 Earnings Shows Revenue Beat, Tax Charge…
  • Apple Beats Earnings Estimates, Faces Challenges in China
  • Apple's Fiscal Fourth Quarter Results Surpasses All…
  • Apple's Q3 Earnings Result Beat On Services Growth
  • Apple Reports A Better Than Expected Q2 2023…
  • lenovo-yoga-book-feature-awesome-specs-android
    Apple Reports Impressive Fiscal Third Quarter…
  • iPhone-14-Mock-pill-and-hole-thumb
    iPhone Revenue Slightly Increases In The 3rd…

Discover more from TechBooky

Subscribe to get the latest posts sent to your email.

Tags: Appleapple musicApple payiphone
Paul Balo

Paul Balo

Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.

BROWSE BY CATEGORIES

Select Category

    Receive top tech news directly in your inbox

    subscription from
    Loading

    Freshly Squeezed

    • AI Helps Google One Reach 150 Million Subscribers May 16, 2025
    • FT Lists Paymenow, TymeBank & Omnisient Among Africa’s Fastest-Growing Firms May 16, 2025
    • MoonPay and Mastercard Partner to Advance Stablecoin Payments May 16, 2025
    • Google Gemini Advanced Users Can Now Link to GitHub May 16, 2025
    • TikTok Accused of Violating EU Internet Content Rules May 15, 2025
    • Activists and Users Criticize NCC & Telcos Over Customer Penalties May 15, 2025

    Browse Archives

    May 2025
    MTWTFSS
     1234
    567891011
    12131415161718
    19202122232425
    262728293031 
    « Apr    

    Quick Links

    • About TechBooky
    • Advertise Here
    • Contact us
    • Submit Article
    • Privacy Policy

    Recent News

    AI Helps Google One Reach 150 Million Subscribers

    AI Helps Google One Reach 150 Million Subscribers

    May 16, 2025
    FT Lists Paymenow, TymeBank & Omnisient Among Africa’s Fastest-Growing Firms

    FT Lists Paymenow, TymeBank & Omnisient Among Africa’s Fastest-Growing Firms

    May 16, 2025
    MoonPay and Mastercard Partner to Advance Stablecoin Payments

    MoonPay and Mastercard Partner to Advance Stablecoin Payments

    May 16, 2025
    Google Gemini Advanced Users Can Now Link to GitHub

    Google Gemini Advanced Users Can Now Link to GitHub

    May 16, 2025
    TikTok Accused of Violating EU Internet Content Rules

    TikTok Accused of Violating EU Internet Content Rules

    May 15, 2025
    Activists and Users Criticize NCC & Telcos Over Customer Penalties

    Activists and Users Criticize NCC & Telcos Over Customer Penalties

    May 15, 2025
    • Login

    © 2021 Design By Tech Booky Elite

    Generic selectors
    Exact matches only
    Search in title
    Search in content
    Post Type Selectors
    • African
    • Artificial Intelligence
    • Gadgets
    • Metaverse
    • Tips
    • About TechBooky
    • Advertise Here
    • Submit Article
    • Contact us

    © 2021 Design By Tech Booky Elite

    Discover more from TechBooky

    Subscribe now to keep reading and get access to the full archive.

    Continue reading

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok