Apple Q2 Earnings: iPhone Sales Fall Flat (reuters.com)

An anonymous reader quotes a report from Reuters: Apple Inc reported a surprise fall in iPhone sales for the second quarter on Tuesday, indicating that customers had held back purchases in anticipation of the 10th-anniversary edition launch of the company's most important product. Apple sold 50.76 million iPhones in its fiscal second quarter ended April 1, down from 51.19 million a year earlier. Analysts on average had estimated iPhone sales of 52.27 million, according to financial data and analytics firm FactSet. However, revenue from the smartphones rose 1.2 percent in the quarter. Expectations are building ahead of Apple's 10th-anniversary iPhone range this fall, with investors hoping that the launch would help bolster sales.

Comments

Re:10th anniversary?

[TheRaven64]

Manufacturer profit doesn't necessarily translate to bad value for you. Apple has a much more limited lineup, which gives them better economies of scale than most other manufacturers. Their SoC design is in-house, which also helps with the margins (for almost anyone else except Samsung, the profit on the SoC is counted to a different company, and even for Samsung is to a different business unit and so doesn't count as profit on the handset). They have also been using that cash surplus to buy factories to make flash for their suppliers, in exchange for deep discounts for the first few years, so they are paying less for flash chips than their competitors. Most companies would find it difficult to make something equivalent to the iPhone for the retail price of the iPhone.