6:28 AM
Prasetya Ega Syaputra
Apple reports iPhone sales down, 1st revenue drop since
2003
Apple sold
more than 51 million iPhones in the first three months of this year — and
that's the problem.
That's 10 million fewer iPhones than the tech giant sold during the same quarter a year
ago. As a result, Apple on Tuesday reported
its first drop in quarterly revenue in 13 years — and the first-ever
year-over-year decline in iPhone sales.
The slide is putting more pressure on Apple and CEO Tim
Cook to come up with its next big product.
Cook, of course, has problems many corporate bosses would kill to have. Despite the decline
in sales, Apple managed to rack up $10.5 billion in profit for the quarter.
"The future of Apple is very bright," Cook told analysts on a conference call
Tuesday.
But Apple is battling perceptions that its latest iPhones
aren't that different from previous models, at a time when overall smartphone
sales are slowing around the world. Apple also sells iPads, Mac computers and
other gadgets, but nearly two-thirds of its $50.6 billion in quarterly revenue came from iPhones.
"They need to come out with that next great
product," said Angelo Zino, a
financial analyst with S&P Global Market Intelligence. Zino said that while he is optimistic about
the company's future, "Apple absolutely needs to start diversifying their
revenue base."
Overall, the company's revenue in the January-March
quarter was down 13 percent from a
year earlier. And the company surprised analysts by forecasting another revenue
drop of 13 percent or more in the current quarter.
The forecast, which was
announced after Apple had closed
for the day at $104.35 a share, drove
its stock price down 8 percent in extended trading.
Apple hasn't reported
a year-over-year sales decline since 2003, when the iPod was still relatively new and the iPhone didn't exist. Since then,
the iPhone and other products have propelled the company's stock value
from $5 billion to $579 billion, making it the most valuable public company in
the world.
Despite the quarterly decline, Chief Financial Officer
Luca Maestri defended the iPhone
business in an interview with The Associated Press.
"We think we can continue to bring a lot of
innovation to the market," he said of future models, while adding that
Apple is working to expand other lines of business.
Apple's revenue for the quarter included $6 billion from
online services, apps and other software, he noted. That's up 20 percent from a year earlier. Analysts agree the
figure could rise further, given that there are more than 500 million iPhones
in use.
Source: http://www.thejakartapost.com/news/2016/04/27/apple-reports-iphone-sales-down-1st-revenue-drop-since-2003.html
