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Apple Has First Earnings Decline In More Than A Decade (go.com)
An anonymous reader writes: Apple has announced its first-ever decline in revenue in the past 13 years as its iPhone sales have slowed down. Apple posted quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion. Last year, the company posted revenue of $58 billion and net income of $13.6 billion. The reason Apple has been so successful is because of the iPhone, which was first released in 2007. What goes up must come down -- and we're starting to see that now. The success of the iPhone is starting plateau and ultimately decrease now that consumers are finding less of a reason to upgrade to the latest and greatest smartphone. Apple CEO Tim Cook pointed to weakening currencies worldwide as one of the obstacles the company would face as iPhone sales were up less than 1 percent year-over-year last quarter. Gene Munster, managing director and senior research analyst at Piper Jaffray, told ABC News, "This has been anticipated for three months now. The reason is nothing [that] is wrong with the iPhone." Munster said this is not worrisome to Apple and that iPhone sales will likely increase by the end of the year when the next iPhone(s) is released.
They stopped innovating about ten years ago, once the iPhone was released. Their products have inferior hardware compared to competitors like high-end Android phones and most PC laptops. The iPad is not a viable long-term competitor to the surface because the iPad is so limited in comparison. Software for Macs is generally inferior to anything on the PC, with the exception of the niche markets of video and audio editing. Apple is one giant bubble that's starting to pop. I'm amazed at how many people are totally in love with Apple and are incapable of seeing things objectively. It's like investment decisions are all being made by Apple fanbois.