First Time For Everything
It looks like the pressure is on, over at Apple. The Cupertino based company has reported its first dip in iPhone sales the products initial release in 2006. This is also the first dip in Apple's sales since 2003. iPhone sales have dropped 16 percent, this quarter, compared to the same quarter last year. Overall sales dropped by 13 percent, down to $50.6 billion. In China alone, iPhone sales plummeted 26 percent. This is no surprise, considering the increase in foreign phone companies offering powerful devices, at much lower prices. No Signs of Getting Better? According to Toni Sacconaghi, an analyst at the Bernstein brokerage firm, "there's no question that Apple's best days are behind it. The company grew at astronomical rates, and it's now so big that its ability to grow at those rates doesn't exist anymore." According to forecasts of the current quarter, things are not looking up for Apple. Projected revenue for this quarter is expected to go from $41 billion to $43 billion. This is a lot lower than what Wall Street was expecting. Will things get better for Apple? When? According to Tim Cook, this drop in sales is due to the regular two-year product cycle of the iPhone. Tim Cook went on to say, "If you look at our installed base of iPhones today versus two years ago, it's increased 80 percent."
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