Apple's quarterly results: drop in turnover and iPhone sales expected

Every three months, listed company
obliges, Apple must reveal its quarterly results. Scrutinized by the
investors, they make it possible to take stock of the health of
different product lines as well as sales.

During the last results presented in January,
Tim Cook made no secret of it
, he anticipated afirst
historic decline in iPhone sales
from one year to the next. This happens
confirms in fact with the quarterly results for the period ranging from
January to March 2016. Apple records adrop in its figure
business
, and sales on just about all of its products.

The Cupertino company announced that it had achieved a turnover of
$50.6 billionand cleared ofbenefits to
amounting to 10.5 billion dollars
. Comparatively, last year
the same period, Apple had achieved a turnover of 58 billion
dollars and 13.6 billion in profit. This is the first decline since
many years while until then each result broke records on
record in terms of year-on-year growth. It remains a
positive resultnevertheless with a gross margin which reaches
39.4% (27.7% net margin).

This declining turnover isdue largely to the decline
iPhone sales
, but also to the decline of the iPad and the Mac.

The iPhone records its first decline since 2007

In the last quarter, Apple sold51,1 millions
d’iPhone
, or adrop of 18.8%compared to 61.1
million units sold last year at the same time. The opening of the
Chinese market last year helped boost iPhone sales, but
that is not the case this year, because Apple recorded adecrease in
26% revenue in China
from one year to the next. Apple cites several
reasons to explain this trend such as the global economic situation and
very strong demand for the iPhone 6 last year during this period of the first
quarter, due to limited production capacity at the end of the year
previous. We'll come back to it later today.

The iPad continues its decline, for the moment?

No surprise for the iPad, Apple's tablet continues its momentum with
a decline in sales, despite the launch of the iPad Pro which was not enough to
reverse the trend. Apple sold10,2 millions d’iPad
compared to 12.6 million last year during the same period, i.e.drop in
19 %
.

Not counted in these figures, it is not yet known whether the new iPad Pro
9.7 inches could help slow down or even halt the progressive decline of
Apple's range of tablets. But for Tim Cook, it should be the case and he
targets sales for the second quarter which return to growth for
making it the best quarter in 2 years. Quite logical after arrival
of a new product, this will be confirmed at the end of June.

During the post-announcement conference, Apple's CFO indicated
that the iPad had 78% market share in the tablet range at over
200 $.

The Mac

The Mac, usually preserved, has also followed the same path as its
two friends. Apple records decline in Mac sales, with4
million Macs sold
against 4.5 million Macs per year
last, i.e. adecrease of 9%. An important update
MacBook Pros are still expected this year, although of course it has not been
mentioned.

The “Others”: Apple Watch, Apple TV, iPods, etc.

Finally, in communication, there is the last category "Others" from Apple
which includes Apple Watch, Apple TV, Beats products, iPod and
accessories. Apple wished from their release not to reveal the figures of
sales of the new Apple TV, nor of the Apple Watch, while specifying that the
sales of the connected watch weresuperior to those of the iPhone
for his first year
. Tim Cook also indicated that sales
concerning the Apple Watch would be like those of the iPod in its time, namely
seasonal, with a high proportion marketed for Christmas.

Regarding "services" (cloud subscriptions, Apple music, Apple
Store, etc.), supported by the billion apple machines used in the
worldwide, revenues jumped 20% to $6 billion.

But still

Some other information was shared during this
conference dedicated to the results:

  • Le service de streaming musical, Apple Music, continue sa progression en
    going from 11 million paying subscribers in February to 13 million
    of subscribers.
  • App Store revenues are up 35% compared to the same
    period last year.
  • Apple has acquired 15 companies in the last 12 months and they
    investments in R&D are at their highest

Source

i-nfo.fr - Official iPhon.fr app

By : Keleops AG

Deputy editor-in-chief, also known under the pseudonym Teza. Former video games journalist, who has been immersed in tech and Apple products since his very first iPhone 3GS in 2009. He has since worked for several American tech sites and now for iPhon.fr. Incidentally YouTuber and Apple product specialist on the MobileAddict channel. To contact me: maxime[a]iphon.fr