Apple’s annual profits fall for first time in 15 years

SAN FRANCISCO (Diya TV) – Apple has reported its first decline in annual sales and profit in 15 years. The Silicon Valley company, which had bounced back from near bankruptcy in 1997 to become the world’s most valuable company today, told investors on Tuesday night that it had sold $215.6bn worth of iPhones, watches, Mac computers and other products in the year to 24 September.

That figure represents an eight percent decline in Apple’s record $233.7bn of sales it collected in the previous year. The decline in sales hit the company’s profits, which fell 14 percent to $45.7bn.

Additionally, it’s the first time Apple’s annual sales or profits have declined since the year 2001, leading some analysts and pundits to wonder if the world’s consumers have reached “peak Apple.” That meaning everyone who wants (and can afford) an iPhone or other Apple products already have them.

Sales declined by 9% to $46.85bn in the three months to 24 September – the third consecutive quarterly fall. The sales fall hit the company’s quarterly profits which came in at $9bn – a 19 percent decline on the same period a year earlier. The fall in sales was mostly down to declining sales of the iPhone, which is by far Apple’s most important product and accounts for two-thirds of all sales. Apple sold 45.5m iPhones in the quarter, a 5 percent drop on last year.

Despite the decline in sales and profits, Tim Cook, Apple’s chief executive, said: “Our strong September quarter results cap a very successful fiscal 2016 for Apple. We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2.”

First launched in 2007, the iPhone has completely transformed the telecom game, but Apple is now facing more intense competition from the likes of Google, which last week released its first branded smartphone, the Pixel, and upstart rivals offering much cheaper smartphone devices in key markets such as China. After Apple launched their first iPhone, they have since launched multiple other iPhones for consumers. This means that consumers have been continually purchasing new phones from the company for a long time. Whilst that is good for the company, it is not good for the environment. Each time an individual purchases a new phone, they discard their previous one. They should really consider contacting a company like Premier Surplus for electronic recycling services. They can recycle the phone, allowing people to purchase the latest Apple device.

The company’s share of U.S. smartphone users remains static at 43.5 percent, according to research firm eMarketer. In the UK, 31.8 percent of smartphones are iPhones, a slight increase on last year. The great hope for Apple was emerging markets such as China and India, but after generating huge year-on-year growth, demand has decreased. Apple’s share of the Chinese market has fallen from 9.2 to 6.7 percent as local competitors up their game and offer decent rivals at much cheaper prices.