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.
Apple is living on borrowed time. They need to come out with something disruptive, but all they can do is incremental upgrades.
"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."
That's not even a sentence!
Try it this way:
The success of the iPhone is starting to plateau and will ultimately decrease now that consumers are finding fewer reasons to upgrade to the latest and greatest smartphone.
.
Stock buybacks are a red flag for me, indicating that the company may be out of investment ideas.
Where the Apple under Jobs succeeded was going into relatively nascant markets (MP3 players, cellphones, tablets), and leapfrogging the pioneers in the field.
The Apple under Cook has made mistakes by trying to enter in markets where people have been there for centuries (watchmakers.)
There are still a lot of markets Apple can take, which the way have been paid for them:
1: Car audio. Even the crackheads won't bust out a car stereo these days. Apple making an actual 1-2 DIN audio head would score big, as car makers would buy it. Car makers would actually be faced with a choice, just like existing CarPlay. Buy Apple's product, or go bankrupt and be replaced by companies that have.
2: NAS hardware. Add some features and apps to the Time Capsule, and people would buy that thing in droves, essentially acting as a home server.
3: Security in general. Make a new type of mechanical, or electro-mechanical key lock like the Medeco CLIQ, and now have tens to hundreds of millions of sales as people and businesses buy better security. The humble deadbolt can easily be improved and made far more secure.
4: Go into the enterprise. Apple has name recognition, so if they made an enterprise desktop Mac, they would sell millions, at Mac prices. Especially with the ability to physically disable the camera/mic, and better AD GPOs.
5: Make a security IoT infrastructure. Special chip on iPhone can run a secure app protocol over Bluetooth (which has encryption in itself), so people can open a safe with just a press of a button on the home button. IoT needs security, and here is where Apple can champion and profit.
6: Sell iOS technologies as an embedded platform, as well as their custom ARM SoC.
7: Get with Intel and VMWare, make an XServe model which has ESXi (upgradable of course) in firmware. Name recognition alone will get these in the door, and Apple was, for a few years, the second biggest storage vendor out there. Maybe it might be profitable to get back in there.
Apple has lost it's advantage; Android phones are selling like hot cakes, Apple's use of proprietary connectors and technologies has alienated many current and potential customers. Apple smart phones and tablets are no longer cutting edge and novel. They created a bubble and now it is popping.
Apple buys Compaq.
Or they're sitting on such a huge pile of cash that any investing in anything that would eat a substantial portion of it would fundamentally change their business or attract anti-trust problems
"goodbye and hello, as always" ~Prince Corwin, from Zelazny's Amber series
I'm amazed at how many people are totally in love with Apple and are incapable of seeing things objectively.
Well, in your post you pretty much demonstrated that this limitation is not confined to those folks living in the Apple universe.
#DeleteChrome
Two words: Soldered RAM. For me that's more than enough.
Then you have probably purchased your last laptop from ANYONE.
I don't like it much, either; but it seems to be an industry-wide trend.
>"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"
And because consumers are also finding that there is often less of a reason to buy an iphone when compared to other high-end smartphones.
I remember those "1984" commercials. I would never want Apple to become a massive corporate bandit, especially one that sells to the dead end of Western Civilization.
Are you sure it is Samsung? An 'o' turns into an 'a' so easily. Enjoy your Somsung
I think not. Earnings were well below analysts' expectations. Guidance for future earnings was worse than that. Not news for nerds. Propaganda for morons.
He once inserted random mutations into his code, just so he could have the experience of debugging.
“Our team executed extremely well in the face of strong macroeconomic headwinds,” Apple CEO Tim Cook, said.
Stock price is down $6 in early after close trading. I'd hate to see what the result would have been if the team had average performance.
In a time of universal deceit, telling the truth is a revolutionary act. George Orwell
Just as the prophecies foretold. My faith in random tech pundits is renewed.
Log in or piss off.
I know I will catch hell for this, but I will say it anyway. The problem is that Tim Cook is by far more interested than being a gay/liberal activist, than being a CEO of an innovative company. If you look at the various stories about him and apple over the last few years, you will see it is alway about the politics, not making "insanely great" doodads.
Many on Slashdot give him a pass, because you like the causes he supports. At the same time, you bemoan the fact that the new iMac mini was actually worse than the old one, computers are not updated nearly enough, computers are not powerful enough for Oculus Rift, or even many games, features such as ram expansion have been downgraded, the new GUI is a backwards step, programs like pages and iMovie are stagnant, programs like Aperture have been cancelled, the iwatch was just plain silly, and the iPhone changes are just plain underwhelming. All this can be now said about a company that a decade ago, saw a world filled with CD players, and figured out how to bring your entire music collection with you at once....all with a slick interface.
Apple used to be about being transformative. Now it is just about being transgendered. I miss insanely great.
"Liberalism is a very noble idea, currently controlled by some very bad people. Be sure you do not get the two confused.
EOM
We suffer more in our imagination than in reality. - Seneca
I know a genuine Panaphonics or Sorny when I see them.
It's rather convenient they were in a controversy over phone security this year wasn't it? It certainly gives them a new selling point for declining sales. Be ready for obnoxious ads in September about how the new iPhone 7 is unbreakable (which it won't be). As soon as I read the actual court order involved in that San Bernandino case, juxtaposed with the hyperbole in the media, I knew this was just another marketing campaign from a company that knows no shame. Now we have the confirmed motive.
If it ain't broke, don't fix it.
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.
I was an Apple fanboy as a kid but I have to say in the past few years their interface is getting absolutely awful.
Sure it looks nice, but they've gone so far towards simplicity it's becoming unusable if you ever stray the tiniest bit off their standard use-case.
On my Android I have a button to bring up a configuration screen for any application, for iOS it's a mystery for each app.
My mother's iPad stopped ringing on incoming calls. Why? I haven't the foggiest idea.
I wanted to print to file from her iPad, it turned out to be hidden in some unlabelled button in an unlabelled expander.
The OS X seems to have gone to a model of zero feedback.
My laptop bugged me to upgrade to El Capitan, I clicked download, the download button greyed out, and I never got another piece of feedback. I don't know if it's downloading, downloaded, or simply stuck. I'm guessing it failed because the same thing happened a few months earlier. Same with importing photos from Mail to iPhoto, click to import, and no feedback, no idea if they imported or not, or to where.
I don't know what's gotten into their coolaid but I wouldn't consider them to be remotely user friendly. My Linux boxes much more usable and easy to troubleshoot when there is a problem.
I stole this Sig
I have a very specific example myself: after hanging out a bit on /r/steam on reddit, I have discovered there are a surprising number of people who can't seem to understand why Valve won't make a Windows Phone version of the Steam mobile authenticator. A quick search of mobile market share should enlighten anyone.
Can we start saying "Beleaguered Apple" again, like back in the '90s? That was so much fun!
A machine that would commonly (audio / visual production installs) be rack mounted in a different room to the operator.
Sonnet makes some very nice rackmount kits for new Mac Pros. There are also shelves, rails, and hangars from other vendors to mount it in pretty much any orientation. What's your point?
You do not have a moral or legal right to do absolutely anything you want.
we've hit "peak smartphone".
The people who want one, have one. The only thing that is going to drive smart phone sales now is occasional replacement and hardware upgrades.
Apple's profits will drop a bit and then level off at a sustainable level. Expecting to maintain continual growth in a finite market is just not possible.
Most of the stuff people use their computers or phones for is already browser based or soon will be. The slight UI differences between accessing browsers via iOS, OS X, Windows, Linux or Android isn't worth paying a premium for. When it comes to hardware specs Apple has lost the lead.
In the long term OSS seems to win out and I don't have much faith in Apples closed ecosystem. It's too expensive in the long term. In the short term you win.
Words cannot explain the brilliance of this post. Well done.
Nah, this is a pretty old post, I remember it being pretty popular a few years back. It's a good one, but pretty stale, I wish people put in at least enough effort to be original - or at absolute minimum, to be something more than a crappy repost. (pun most certainly intended)
"Set a man a fire, he'll be warm for the rest of the night. Set a man afire, he'll be warm for the rest of his life."
>>My Linux boxes much more usable and easy to troubleshoot when there is a problem.
you're missing the point.... for most users, not having the problem in the first place is worth far more than "ease of debugging" after the problem has happened. I run Linux on my own machines, and force it on my teenagers, but never in a million years would I try to pass it off on my elderly parents.
Apple's entire selling point is that it's fashionable. Poor people can't afford them, and there's a vestigial status attached to them once appropriately awarded for being a better device. The problem is, the iPhone is neither better, nor cool anymore. They did extraordinarily well being "the" phone for almost a decade. Nightclubs are lucky to get 5 years. They even recycled old Samsung ideas like the large screen, much to the desperately-ignored hypocrisy of their rabid fans that spent years decrying "I don't need a big phone, I can use mine with one hand!". It was truly masterful, but all fashion trends come to an end. Apple does not know how to compete without the "cool" advantage, and they no longer have a visionary, with the will to match, at the helm. So expect this to be the beginning of a trend downwards.
If it ain't broke, don't fix it.
>>My Linux boxes much more usable and easy to troubleshoot when there is a problem.
you're missing the point.... for most users, not having the problem in the first place is worth far more than "ease of debugging" after the problem has happened. I run Linux on my own machines, and force it on my teenagers, but never in a million years would I try to pass it off on my elderly parents.
They'd probably do the same as my elderly mother does with Apple, she either doesn't do what she wants to do or finds some workaround until I show up and try to fix it.
The use-cases of an elderly parent aren't that complicated, read and send email, play videos from the email, browse the web, upload photos, print things, video chat.
Once you get things configured it's all point and click, they don't actually need a command line.
But if things do go wrong it's really easy for me to ssh in and figure out what's going on because the Linux ecosystem is actually designed to anticipate errors, as opposed to my Mac where I can't tell the difference between an error and stupid interface design.
I stole this Sig
The iPad is a tablet.
The Surface is a computer.
Not sure how they are really in competition really.
They function differently.
The kids use the iPad every day and get great use out of it.
Not sure I could say the same if they had a Surface.
My laptop has removable ram, and it's only 3 years old.
BeauHD. Worst editor since kdawson.
Just look at the Mac compare page, it's like John Sculley in the early 90s. What market segment does the Air serve awkwardly between the plain and Pro models?
Not to mention the iPad Pro has, arguably, a 'better' screen than any Macbook, for those who prefer vertical pixels.
Apple's earnings came with the line: " The company currently holds $233 billion in cash and marketable securities ".
Holy hell, that's a stupid amount of cash in hand to have at your disposal.
What's Tesla worth right now?
I'd love to see Musk team up with Cook as he's the closest living thing to Jobs.
Sure there's a lot of Tesla lovers who hate Apple but I'll bet there's a shit load more Apple fans who'd buy a Tesla if it had an Apple on it's ass.
It's not just the cars, I love Tesla's entry into the home power market with their wall mounted batteries.
If you want disruption you need to get into some new markets. 10 years ago Apple didn't sell phones.
Computing devices have almost reached commodity stagnation. The App market has been and gone.
There's so much going on in power, renewables and the changing global weather patterns.
Believe in global warming or not this area provides a huge marketing opportunity.
Oh, so that means your laptop doesn't support InstantGo/Connected Standby, which requires soldered RAM for security reasons (to prevent cold boot attacks).
It doesn't, and I'm fine with that.
BeauHD. Worst editor since kdawson.
"But if things do go wrong it's really easy for me to ssh in and figure out what's going on because the Linux ecosystem is actually designed to anticipate errors, as opposed to my Mac where I can't tell the difference between an error and stupid interface design."
Care to elaborate? From a SSHing in and fixing the issue standpoint I am not seeing any difference that you would encounter between a Darwin system and Linux distro that would fall into "regular userland issue".
From an application perspective Linux apps are generally designed with command line users in mind. You're a lot more likely to find human readable configuration files, online resources that explain how to fix things in the configs, a rich toolkit pre-installed, and if there's something extra you need there's a ton of troubleshooting apps trivially installable with yum or apt.
Sure there's fink and other package repositories for Apple but they're much sparser, not as well maintained, tend to conflict with eachother, and require a bunch hoops to install XCode and such. Basically Linux makes it way easier for me toubleshoot.
Oh, and on the topic of usability I just took another look at the App Store and found the El Capitan screen where I clicked a button that said "Download" and got no feedback, just some busy window indication forever.
Now there's a pretty picture of some mountains and the words "OS X El Capitan A refined experience... yadda yadda".
At the side there's a box that says "Downloaded".
Yay!! I did downloaded it! Now what next???
Hmm, underneath the pretty picture there's big letters "No Updates Available".
Ok, so I know I downloaded it... but how do I install it? There's no install button, there's no any button, just "Downloaded" and "No Updates", maybe that means it was installed? Do I have to go somewhere else to install?
Wait! I see some small text! It's a link! "Learn more"! Yay! Information!!
A new page comes up! And there's a button! There's only one button, this is Apple after all. But I can click it!
And the text on this wonderful button says.....
Download...
F U Apple and your El Capitan download mind games!!!!.
I stole this Sig
Know anyone who has Project Fi service? If so, maybe you could borrow their Fi sim to see if will work in the S7.
I like my Fi service but I hate the Nexus 6 phone they "make" you use. In theory, an activated Fi sim can be used in any unlocked GSM LTE handset. This is something I really want to do.
Sig for hire.
My laptop has removable ram, and it's only 3 years old.
So does my 3 year old MacBook Pro.
But I said (or rather, implied) that NOW you would be hard-pressed to find a laptop that was a NEW design (that is, the most recent model) that has removable RAM.
Oh, so that means your laptop doesn't support InstantGo/Connected Standby, which requires soldered RAM for security reasons (to prevent cold boot attacks).
WTF is that? Is that a Windows thing, or what?
Apple has already blown half that pile by taking out $100B in combined bonds and 'special' debt in order to buy back stock and pay dividends. By the time they are finished with this buy back program nearly all of that cash will have been spent.
I will quickly admit to being an Apple fan, but they do seem to have a number of issues they just don't feel are worth fixing. Preview app is the one that pisses me off the most; it used to be a great viewer with built-in annotation options that rivaled Acrobat. But now the market has moved, and Bluebeam is the hot shit in that area. And Preview went 18 months being completely unusable (now fixed in that sense, but some updates slow things down and others speed things up).
They do need to get back to basics on a number of issues, and usability is one of them.
That said, compared to Windows it is still great in my world. Native ssh, rsync, and all the consistent UNIX commands is great. Compared to Linux... well they have their own systemd, which complicates things. They have a equally schizophrenic security model with pluses and minuses.
But to your complaint on logging, Console does a pretty good job filtering through content even if I prefer grep.
Yeah, agreed. You left out how 3D printing was gonna be the next big thing.
Apple has already blown half that pile by taking out $100B in combined bonds and 'special' debt in order to buy back stock and pay dividends. By the time they are finished with this buy back program nearly all of that cash will have been spent.
And yet the pile is higher than before. Must be blowing up the pile.
Of course news about a fake are Fake News.
But if things do go wrong it's really easy for me to ssh in and figure out what's going on because the Linux ecosystem is actually designed to anticipate errors, as opposed to my Mac where I can't tell the difference between an error and stupid interface design.
Sounds like a combination of lack of knowledge and bias, both on your part.
You can ssh into a Mac, too; or you can simply use any VNC Client to do "Screen Sharing" with a Mac (e.g., when on my work Win7 laptop, I use TightVNC). In fact, you can even launch a separate OS X session (using another User Account), and not disturb the GUI of the local user. Note: This capability even allows multiple VNC Clients to use the same Mac simultaneously. Try THAT with Windows out of the box...
Guess you need a little knowledge on remote Mac Administration. Here's an article on "Screen Sharing". And here's how to enable ssh on OS X (hint: the "Screen Sharing" (VNC) Enable is in the same place)
Let's prop them up like Tesla, with the indirect and direct government help (and like GM).
Easy, go to some decent on-line place and look at regular 15" etc. laptops, NOT crapblets, tablatops and netbooks and i7 netbooks.
Most have RJ45 etc. and a couple DRAM slots.
Rotating hard drives still widespread but you may not get one, or repurpose it as external back up. Even HDD + SSD is an option (out of the box). Get Asus, MSI, Gigabyte, perhaps Acer then the power connector is a universal featureless round one too.
What if Android is overtaking iOS in phones, in the same way that Windows overtook MacOS in PCs? For those who don't remember: Apple nearly went bankrupt in the 1990s.
Apple had the same philosophy with PCs in the 1990s that Apple has now with smart phones: super high margins, everything proprietary. Apple expects to be worshiped to the point that Apple does not need to have a better value.
From what I have been reading, the Samsung Galaxy S7 Edge beats the iPhone in several respects.
It is my understand that Samsung beat Apple to the punch in the following:
higher resolution camera
heart rate monitor
big display
amoled display
water resistant
wireless charging
1080p display
answer by waving
wirelessly sharing photos
controlling a TV
I don't think the few social media top dogs are going away soon. Nor a few ones in the "sharing economy" (i.e. the one for car rides, the one for black market short duration housing rentals)
But outside a few pseudo-monopolistic giants ?
How ironic that the internet has come to this. People are walled off each in a few services, aggregator sites or filtering bubbles. Movies/TV used to think we'd go in universal VR chatrooms, just like a 3D IRC. Perhaps it's time to learn some HTML 3.2
How is socketed RAM a security issue? More to the point, how is InstantGo not just a Microsoft knock-off of Apple's "dark wake" (which was supported long before soldered RAM, but which I think does require an SSD)?
Check out my sci-fi/humor trilogy at PatriotsBooks.
Easy, go to some decent on-line place and look at regular 15" etc. laptops, NOT crapblets, tablatops and netbooks and i7 netbooks. Most have RJ45 etc. and a couple DRAM slots. Rotating hard drives still widespread but you may not get one, or repurpose it as external back up. Even HDD + SSD is an option (out of the box). Get Asus, MSI, Gigabyte, perhaps Acer then the power connector is a universal featureless round one too.
But, as I said, those are last-generation designs. Anything NEW coming out of most, if not all, laptop mfgs. WILL have Soldered-In RAM. Apparently, in the Wintel world, it is even DICTATED by Microsoft for some sort of "Sleep/Standby" standard (name escapes me) that has existed since Windows 8 to prevent "cold boot attacks".
And since Apple also OFFICIALLY supports Windows (through BootCamp), I would bet that that weighed into their decision to switch to soldered RAM.
So, curiously enough, if you're looking for the REAL "bad guy" when it comes to the universal switch to Soldered RAM (in both the Mac and Wintel worlds), look no farther than MICROSOFT, not Apple.
Jus' Sayin'...
The Mac App Store is a particular weak point of Apple's. It very often seems like its been totally abandoned, and it causes almost as many problems as it solves. Unsurprisingly, it's the Apple faithful that complain the most about it, because it's a really glaring sore point in an otherwise very competent ecosystem. I never use it anymore. I was excited at first, but I can almost always find the app I need better using google, and more of my money goes direct to the developer that way. I prefer the app store model on the phone, but it's really been a bust on the Mac.