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Apple's Annual Sales Fall For First Time Since 2001 (cnn.com)

An anonymous reader quotes a report from CNNMoney: Apple just posted its first annual sales decline since 2001, the year it launched the iPod and kicked off a tremendous run of groundbreaking products. The tech company revealed Tuesday that annual sales fell to $216 billion in the 2016 fiscal year ending September 30, from a record $234 billion in 2015. The sales decline is closely connected to the falling sales for the iPhone, which remains Apple's largest source of revenue. Apple sold 45.5 million iPhones in the September quarter, down from 48 million iPhones in the same quarter a year earlier. That marks the third consecutive quarter when iPhone sales and overall revenue have declined from a year prior. Many analysts have raised concerns that the global smartphone market is saturated. Customers are taking longer to replace their phones. And Apple's latest iPhone is a dead ringer for the previous two models, eliminating some of the desire to upgrade. The good news is that this sales decline may prove to be a blip and not the new norm. Apple is projecting that it will post sales of $76 billion to $78 billion in the upcoming quarter, up from $74.8 billion a year earlier.

31 of 232 comments (clear)

  1. Nothing of significance by Anonymous Coward · · Score: 5, Insightful

    "a tremendous run of groundbreaking products"

    - removed headphone jack to previous generation phone
    - upgraded battery and performance slightly on watch
    - released a more performant iPad

    Nothing of significance -- and that's coming from an iSheep with several Apple products.

    1. Re: Nothing of significance by tginouye · · Score: 5, Interesting

      I think by "a tremendous run of groundbreaking products" they mean starting in 2001 to now. It's up to anyone else to determine how groundbreaking they think the products from the last 15 years are, but at least they've done more in that stretch than just 2016.

    2. Re: Nothing of significance by Guy+Harris · · Score: 2

      released a more performant iPad

      "Performant"?

    3. Re: Nothing of significance by harperska · · Score: 4, Informative

      "Performant" != "Fast". A performant thing is something which performs well, by whatever metrics are applicable to that thing. A performant algorithm is one that has both low time and space complexity. A performant web browser is one that renders the page quickly while also implementing the most web standards. A performant mobile device is one that is fast while drawing a minimal amount of power so that its battery lasts and it doesn't overheat. So "performant" is a very performant word, as it is a single word that means exactly what it needs to mean.

    4. Re: Nothing of significance by PopeRatzo · · Score: 3, Funny

      And while you're at costco, get a 5 gallon tub of crisco for $20. Much cheaper than a wife!

      But if you can figure out how to swing both the 5 gallon tub of Crisco and the wife, you'll get a lifetime of flaky-crust pies to eat.

      --
      You are welcome on my lawn.
    5. Re: Nothing of significance by dfghjk · · Score: 2

      "Performant" is just the latest in a long history of made up words and phrases intended to differentiate. It doesn't mean anything new or special.

      "Perform" and "Performance" don't literally mean "Fast" either, but a "performance car" would be assumed to be fast just as "performant code" would be. Should we now use the term "performant car"? Of course not; we don't need people in the auto industry to look smart doing the same old things. Coders need to be pretentious.

      If "performant" is to mean "does it's function well" then all it really means is "doesn't suck". Personally, I have a higher bar.

    6. Re: Nothing of significance by xxxJonBoyxxx · · Score: 3, Insightful

      >> tremendous run of groundbreaking products...since 2001

      That's more polite than saying "Apple was peeing awesome sauce until Jobs started pushing up daisies"

  2. Courage by XSportSeeker · · Score: 3, Funny

    "Because it takes courage to take a fall"
    - Tim Cook, 2016

    Yes, I'm joking.

    1. Re:Courage by rudy_wayne · · Score: 2

      "Because it takes courage to take a fall"
      - Tim Cook, 2016

      From 2012 through 2016, Apple's total revenue was $960 Billion.

      I'm sure the pile of money cushioned his fall.

  3. If they'd actually keep up their computer lines by hsmith · · Score: 2

    Maybe they'd sell more. Been waiting to buy a new Macbook Pro forever now - without updates to the MBP line. Took forever for them to update the Mac Pro. Yet, minor dumb improvements once a year to the iPhone like clockwork.

    1. Re:If they'd actually keep up their computer lines by Hognoxious · · Score: 2

      Dido the smart phone.

      Play bland music on it?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    2. Re:If they'd actually keep up their computer lines by lucm · · Score: 2

      Cute, you do online banking and watch cat videos on your Linux box. Some people do real work.

      Like what?

      --
      lucm, indeed.
    3. Re:If they'd actually keep up their computer lines by sglewis100 · · Score: 2

      Like shooting and editing cat videos.

  4. PRO hardware needs to come back they killed by Joe_Dragon · · Score: 3, Insightful

    PRO hardware needs to come back they killed so much like.

    Mac mini server

    Mac mini with quad core cpus

    Xserve and they did not at least say it's ok to run Mac OS X Server in a vm on any base hardware you can run it that way but the licensing restrictions say no.

    imacs with easy to get to disks

    laptops with easy to get to disks.

    a pro workstation (the new mac pro really missed the mark)

    They payed lip service to gameing by making some of a deal of trying to push mac os for gameing but not really having the video cards for it to work well. Say big imac screens with weak video cards, the 2012 old mac pro only had a ATI Radeon HD 5770 1GB in the base system.

    1. Re:PRO hardware needs to come back they killed by dgatwood · · Score: 2

      Sure it can. "macOS is an operating system written by a company that doesn't know you're supposed to capitalize proper nouns." There. See how easy that was?

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    2. Re:PRO hardware needs to come back they killed by dgatwood · · Score: 3, Insightful

      The pro machines never sold well. The Mac Pro had laughable sales,a s does the Mac Mini. Apple really kept them along because of the small by very vocal community who can be guaranteed to buy a few thousand units.

      The purpose of pro machines isn't to sell well. The purpose of pro machines is bragging rights—specifically, being able to say that you build machines that are some of the best on the market, and being able to say that people do amazing things with your machines. But sure, if you want OS X to turn into a passive media consumption platform like iOS, keep dumbing down the hardware. Pro users will start using other platforms to do real, creative work, and eventually OS X will wither and die.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

  5. I've said it before, without Jobs they're toast by Anonymous Coward · · Score: 5, Insightful

    I've said it before and I will say it again: Without Jobs Apple is toast. Just like the last time Jobs left. They will continue for some years due to momentum but there is no stopping their fall. Without Jobs they are rudderless.

    1. Re:I've said it before, without Jobs they're toast by perpenso · · Score: 4, Informative

      I've said it before and I will say it again: Without Jobs Apple is toast. Just like the last time Jobs left.

      The original Mac under Jobs' tenure was an utter failure. Lots of press, disappointing sales. Many years after the Mac's introduction the Apple II was still paying the bills at Apple, carrying the Mac project. Jobs' Apple III (note 3 not 2) was a failure. Job's NeXTcube was a failure.

      The Mac only became successful after Jobs was gone, when design features he opposed were introduced. An open box, slots, etc.

      The iMac G3 of 1998 was Jobs' first successful computer. Prior to that he misread the market, the customers wants/needs over and over again.

      That said what really made Macs popular was the shift to Mac OS X, which Jobs deserves some credit for since it was a fork of NextOS, combined with the shift to Intel CPUs. Basically once people no longer had to make a choice between Mac OS or Windows, but could dual boot or effective emulate (the cpu architecture no longer had to be emulated so performance was many times faster) so they could have both operating systems on the same machine. This is when Apple's Mac sales rapidly doubled.

      In short while his record with digital music players and mobile devices is pretty damn good, Jobs' record with computers is pretty spotty, more likely a failure than a success. The Apple II was successful in part because Wozniak ignored Jobs on important design decisions and the Apple II had to carry Jobs for many years when he was able to bully people to get his way and those projects failed.

  6. The 6th gen was a spike above the normal trend by perpenso · · Score: 4, Insightful

    This doesn't seem like a surprise. You can't expect people to keep replacing $700+ devices every one or two years.

    I think it has more to do with the iPhone 6 generation being a very popular upgrade, mostly due to the larger screen sizes. That was a significant differentiator between the iPhone 4 and 5 generations. The iPhone 7 generation is too similar for many people to want to accelerate their device upgrade plans.

    In short its not that sales of the current generation are bad its just that the previous generation was phenomenal, a spike above the trend.

    1. Re:The 6th gen was a spike above the normal trend by perpenso · · Score: 3, Interesting

      I think it has more to do with the iPhone 6 generation being a very popular upgrade, mostly due to the larger screen sizes.

      Am I the only one who remembers the pre-iPhone6 fanbois sneering at the Samsung phone large screen and insisting that the iPhone was "right-sized"? That goes to show the level of iPhonyness of the Apple zealots.

      I only have a 6 because I needed it for development, it is at the upper limit of what I consider pocket sized. 6P no way. I still prefer the 5 since it is more convenient to carry around. I'll probably get an SE next, its basically an updated 5. I'll use an iPad if I want to watch TV/movies not the phone.

      I've met quite a few 6 users who miss the more convenient size of the 5. Nearly all agree there is something nice about everything being easily reachable by your thumb and that the 6's hack to scroll the screen down on demand is awkward. So you may find many 6 owners still of the opinion that the 5 was "right sized".

    2. Re:The 6th gen was a spike above the normal trend by JaredOfEuropa · · Score: 3, Insightful

      Yes, I am in the same boat: I really prefer the size of my old 5S, but kind of had to upgrade for my app development work. Another thing: why on earth did they move the off button from to top of the phone to the side? When you pick up the phone you tend to squeeze it, often hitting that off button as a result.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:The 6th gen was a spike above the normal trend by Ash-Fox · · Score: 2

      When you pick up the phone you tend to squeeze it, often hitting that off button as a result.

      You're holding it wrong!

      --
      Change is certain; progress is not obligatory.
    4. Re:The 6th gen was a spike above the normal trend by sglewis100 · · Score: 2

      I think it has more to do with the iPhone 6 generation being a very popular upgrade, mostly due to the larger screen sizes.

      Am I the only one who remembers the pre-iPhone6 fanbois sneering at the Samsung phone large screen and insisting that the iPhone was "right-sized"?

      That goes to show the level of iPhonyness of the Apple zealots.

      The millions of iPhone SE sales probably mean that some of those small screen fans really were fans of small screens, and still buy small screened iPhones.

  7. Re:First poSt by Guy+Harris · · Score: 2

    don't want to feel troubles of Walnut [mi7.edu] found 4erspective, the for the project. So on, FreeBSD went

    D00d, you might want to check those links - goat.cx is now a parked domain. You'll need to find the new home for pictures of Mr. Johnson's world-famous anus.

  8. Phones have reached good enough. by Anonymous Coward · · Score: 5, Interesting

    Phones are like computers.

    From the 80s to mid-late 2000s, businesses and later people (when it reached commodity prices) often brought new computers every 3 years, despite the massive cost, because the speed bump was so subsequent that it affected productivity. Other than a McD's cashier or Bank Teller at work, almost no one used a10 year old PC if they didn't have to, even if was $5,000 when new and worked as well as the day it came out of the fatory.

    Outside of gamers/artists and other niches, a good (at the time) 2010 computer would fit the masses just fine and the experience would be mostly the same. The same couldn't be said for a 1993 computer in 2000 or a 1999 computer in 2006. Notebooks are a different story due to form factor but getting there. In fact, the biggest upgrade most people will anticipate in a desktop won't be CPU but screen resolution -- soon 4k, but the vast majority of PCs are still using 1080p which probably was the same story in 2010.

    Phones have reached the good enough with iPhone 6. In both screen resolution and speed/ram. I have a iPad 2 from 2011, total PITA for daily use and not suitable for anything but netflix. Browsing is molasses. But I could see using my iPhone 6 for 3 more years without major hassle. Or a modern Samsung for 7, due to super screen res.

  9. Re:Apple is the Trump Towers of computing. by dreamchaser · · Score: 2, Insightful

    Seriously. People are talking about it. Very important people. Experts!

  10. I don't think you can compare the two. by Barlo_Mung_42 · · Score: 2

    Apple of 2001 made computers.
    Apple of 2016 makes phones. The fact that they're now making fewer phones just means the phone market is maturing as the computer market matured. The real question can the revolutionize yet another industry? Steve Jobs? Perhaps. He was smarter than me so maybe he could've come up with something.

    Not an Apple fan in general but now I feel a bit sad.

  11. Yup. Apple products used to be focused around by aussersterne · · Score: 4, Interesting

    enabling the user to do things they otherwise wouldn't know how to do or be able to do. Since Jobs left, they've steadily slid into the old game from the '90s and '00s that the tech majors (HP, Compaq, and so on) used to play—"innovation" becomes another word for "throw gadgety gimmicks at the wall and see what sticks," but without well-thought-out reasons why users might want the device, or an understanding of the ways in which UX friction impacts the device's usability.

    Compared to the rest of the marketplace and competing products at the time, the original iPhone, the original iPod, the original Intel Power Macs, the original LaserWriter, the original Macbook Pro models, the original iPad, etc. were all towering improvements that enabled users far more than competing products did.

    Now, the trend is the opposite.

    On the consumer end, iOS phones and tablets feel arbitrarily constrained next to Android
    Current Mac OS machines are generally limited in serious software and upgradeability again relative to Windows machines
    On the pro end, Apple's application ecosystem is weak once again compared to pro-level Windows applications ...and so on.

    It used to be that you paid a premium for Apple products but got much more or at the very least something highly differentiated for your money (esp. in the cases of early iPods vs. other MP3 players, iPhone 1 vs. other smartphones, iPad vs. other contemporary tablets, etc.).

    Now you pay a premium either for less or for something that is largely undifferentiated (and often negatively so in the minor differences that do exist).

    It hasn't always been the case that you're simply paying double for brushed metal and a glowing Apple logo, but it certainly feels that way now. People still want to pay for quality (hey, the aluminum case and better QA are nice), but now they have to consider the tradeoff—I can pay a lot more and get a nice metal Apple device, or I can pay a lot less and get a phone that's more configurable and flexible.

    That's my own feeling, anyway. I'd love to have the nice finish of an iOS device, but even if there was price parity I couldn't give up the flexibility of Android. I don't want to be tied down to Apple's visuals, Apple's icon positioning, Apple's version of KHTML, Apple's take on the (non-)filesystem and so on. I love Mac OS as well, or at least I have done since OS X, but the new Macbook Pros are limiting and I'm seriously considering getting a Windows laptop for my next purchase, just so that I can access hard drive, memory, and so on.

    Apple has begun to fetishize itself, rather than fetishize overall UX.

    --
    STOP . AMERICA . NOW
  12. Phones ARE computers by sjbe · · Score: 3, Insightful

    Phones are like computers.

    They aren't "like computers" they ARE computers. They are computers that happen to be able to make phone calls.

  13. Re:Apple is the Trump Towers of computing. by um...+Lucas · · Score: 2

    Why rag on Apple about this? Maybe I'm mistaken, but can you name a smartphone maker who manufactures in the US? Or PC vendor? But Apple alone is the fall guy?

  14. Re:Apple is the Trump Towers of computing. by um...+Lucas · · Score: 2

    I had a motorola atrix once. Easily my least favorite/least durable phone ever. I had an otter box case even, it slipped out of my hand from two feet above the ground, landed on the top corner of the phone, and entire screen turned into a spiderweb of cracks. Maybe other motorola's faired better?

    Seems like the future for manufacturing in the US is the Elon Musk approach - factories employing as much automation as possible; those will provide jobs for the contractors that build them, but thereafter not so much.

    Compared to his "gigafactory" which will make batteries and employ 6,500 people, the future of Tesla manufacturing will be that there are no people on the production line, at all.

    Gigafactory
    https://www.fastcompany.com/30...

    Tesla Factory
    https://www.washingtonpost.com...

    Everyone loves to complain how we lost our manufacturing to China, but the truth is we began losing it a LONG time ago with the "invention" of automation. Companies bringing their manufacturing back to the U.S. will earn big rounds of applause, but in all likelihood, will only be doing so because they're determining that it's cheaper to do without the humans at all.