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Apple profits drop for the first time in years

For many years Apple announced its financial results in effusive form, but this quarter the unthinkable happened. Company profits have dropped.

apple_company

It was a situation that was expected by both, analysts and Apple itself, but what was not expected was that it would be so low. Yesterday Apple presented its sales results for the second fiscal quarter of 2016. The figures are, as a whole, low and show that the company is selling less and therefore have less profits.

After years and years with sales and high profits, Apple presented the first time a general downturn, which, according to some analysts, had not happened for 13 years. Apple presented for this period, revenue of 50.6 billion, a decrease of 13% compared to 58 billion in 2015.

iPhone sales

iphone_1-1

The asset that has brought the most money to Apple, the iPhone was the one what showed the highest floating sales. Overall, this quarter were sold 51.2 million iPhones, representing a decrease of 16% compared with 61 million units sold in the same period of 2015. This is the first time that sales of iPhones present a decrease in accumulated year to year.

iPad sales

ipad-sales

With new products launched in the last year, the iPad was still unknown. This quarter the company sold 10.3 million tablets, a decrease of 19% compared to the 12.6 million sold last year.

Mac sales

macbooks

The line of personal Apple computers also suffered a downturn and has fallen by 12%, with this quarter sales reached the value of 4.03 million units, a figure that contrasts with the 4.6 million sold in the same quarter in 2015.

Apple’s services

apps-on-discount-app-store

In contrast to the general decline in sales of its products, the bet of Apple in services seems to be compensate. This quarter the company achieved revenues of 6 million dollars in their services, when last year had reached the value of 5 billion. These services are the App Store, iTunes Store, Apple Pay, iCloud and other.

The “other products”

watch

The category of other Apple products also managed to break the general decrease. The Apple TV sales, Apple Watch and several other products this quarter yielded 2.2 billion dollars, an increase of 29% compared to 2015.

Conclusion

The figures presented show that Apple had a drop in profits, which came to 10.5 billion dollars, a drop of 23% compared to the figures in the second quarter of 2015. Some of the new launched products have not yet reached the peak of sales, such as iPhone SE and iPad Pro 9.7-inches, it is necessary to wait for the next quarter to see how they can help Apple.

These are values that were not expected, even with all the less positive forecasts that were emerging. After years and years of record profits, Apple seems to have managed to maintain the pace of growth that many envied.

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