Wednesday, 27 April 2016

Apple Sales Fall. It's still all good.



Iphone Sales have fallen for the first time ever and with that, Apple's Revenues have fallen too for the first time.

Sales of a staggering 50 Billion+ for 3 months ending in March were -13% on last years comparable. Talk about being a victim of your own success. 

Revenues from services (Itunes, Apps etc) were +20%. Apple watch performance was unclear but seemingly 'good'.

Iphone sales which generally accounts for 65% of Apple's Revenue, were down in the quarter from 61 million to 51 million and Ipad/Mac sales were also down ....but slow downs in Ipad sales is becoming a trend. 

It seems that 'the Mac premium' is not being paid by consumers as easily anymore and of course, IPhone has to reach saturation at some point.

Phone upgrades too, are less attractive as the OS remains 'more or less' the same and where do you go after Iphone6? Added to that, publicity about the FBI and Tax issues, have a negative affect.

A profit of 10.5 Billion usd is down -23% but of course, just keeps adding to he massive Apple cashpile. Enough cash that it could have bailed out Ireland in the recent downfall for example. Apple is stronger than a lot of countries.

However, it's a significant drop and a significant moment with the company also suffering from a lack of innovation with no new brilliant products on the horizon.

But what a company. The trail blazer, the cash king and still generating sales of 50 Billion usd in a quarter...what's not to like?

But where do you go now? Rebuild trust in the Apple brand with an extensive marketing campaign that shows the value in Apple products and generates usage of the services. 

Watch for it.