Cook says to expect history in April when iPhone sales will show a year-over-year decline

Cook says to expect history in April when iPhone sales will show a year-over-year decline
Apple has never reported a year-over-year quarterly decline in iPhone sales. It came close today when reporting its fiscal first quarter earnings. Apple sold 74.8 million handsets during the October through December time frame, a mere 300,000 more than the 74.5 million it sold in the same quarter last year.

With most analysts calling for Apple to sell 54.6 million iPhone units this quarter, that would represent a decline from the 61.2 million that Apple sold in the same quarter last year. And this afternoon, none other than Apple CEO Tim Cook confirmed that history will be made during Apple's next earnings release in April.

During the company's conference call following the earnings release on Tuesday, analyst Toni Sacconaghi from Sanford Bernstein asked Cook whether Apple was in the throes of a more serious decline, one that would result in lower iPhone sales for all of 2016. The Apple CEO's response included an admission that the company will report a year-over-year decline in iPhone sales for the current quarter.

But that could be the low point. Tim Cook says that he expects iPhone sales to recover in the second half of the year. He might have been looking at stats that show 60% of iPhone users have yet to upgrade to the Apple iPhone 6 or Apple iPhone 6s series. Or he might have been looking at emerging markets that are just beginning to get 4G LTE connectivity, or a  rapidly growing middle class in China.

The bottom line is that the fiscal second quarter's historic year-over-year decline in iPhone sales appears to be a hiccup. And with a newly designed Apple iPhone 7 expected to launch during Apple's fiscal 2016 fourth quarter, there is every reason to think that Cook is right.

source: AppleInsider

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1. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

No surprises. World economy is going on a decline.

2. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Smartphone market is saturating. There is very less incentives to upgrade every year.

3. Tziggy14

Posts: 626; Member since: Sep 02, 2014

No s**t Cook. You got Chinese market stagnating. Phone subsidies going away. People keeping their phones for longer because of less reasons to upgrade. And then prices being driven down thanks to the likes of Chinese companies.

4. rd_nest

Posts: 1656; Member since: Jun 06, 2010

BTW, if there is peace in this world, we will see businesses growing more. Poverty, crime, lawlessness, fighting will only benefit firearm companies, not normal people.

5. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

While I agree that poverty and crime won't benefit normal people, there are many other industries that do benefit, like medical, military, security, etc. It's not just firearms companies benefitting.

8. HonestRealist

Posts: 196; Member since: Jan 25, 2016

The world needs less military force, not more, those already in the field need to be productive and add to the economy in other ways. The same applies for security, in a perfect world you wouldn't need it, period. Medical care will always be there with or without crime or poverty, infact remove poverty and more people will be seeking medical attention.

15. ibend

Posts: 6747; Member since: Sep 30, 2014

no worries, some country invest tons of money to make and mantain their aircraft carrier, building gazillion of fighter, and nuclear arsenal.. it totally look like "world peace" isnt it? /s if only they use those money to train and give some expertise to all the unemployed people, make factories and make more employment.. proverty will be gone right away, and crime case will be reduced significantly

19. HonestRealist

Posts: 196; Member since: Jan 25, 2016

The world is far from perfect, and humanity has only seen 268 years of peace in all time our species has been on Earth. We all have ideologies on a better tomorrow... But my advice is not to get your hopes up. Things aren't always as they "should be". Such is life.

30. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

The world has less military forces. It's why the USA has a bigger military than all countries combined. At a cost me can't even afford.

6. HonestRealist

Posts: 196; Member since: Jan 25, 2016

Transparency is king. Thank you Mr Cook.

7. keithtae

Posts: 564; Member since: Mar 25, 2015

They will be fine. Apple will survive no matter what it is.

13. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

I'm sure Nokia said the same thing.

14. keithtae

Posts: 564; Member since: Mar 25, 2015

Apple is different from Nokia. Apple has millions of iSheeps who would even die for Apple. I really doubt they will end up the way Nokia did

16. ibend

Posts: 6747; Member since: Sep 30, 2014

Nokia also have.. thats why people still buy N-series dispite of all those android on market at that time.. (and the same for blackberry) but their fans finally give up, lol

26. j2001m

Posts: 3061; Member since: Apr 28, 2014

Easy can happen, (next info is just me make it up) Take if Samsung made the s7 a new folderable phone that turned into a full tablet with easy and was supper cool and also did something that no other phone or company can even think off and was being sold for the same price as the iPhone, it be game over for Apple as they have no other products and ther a big problem, there is no new big product they can come up with VR is never going to sell in the same numbers

32. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Before the iPhone Apple was dying. The Mac can't hold up Apple as a company. What happens when the iPhone can no longer sustain Apple? What is the next leap in mobile technology? Unlike Apple, many companies don't have all their eggs in one basket. Apple dows! It makes Apple more vulnerable vs Nokia and Blackberry. Nokia has other options, so did RIM, just not ones big enough to sustain a company their size. If Apple loses iPhone, they would need to dump more than 50% of their employees. Consider. Less iPhone sales also mean less app sales, less accessories sales and more. A huge hit in revenue with 100,000 employees is not good. Again when Nokia lost phones, it was basically it's life blood. Same for Apple. Yes Apple does have dedicated fans, but not enough to sustain them in this market. Considering the biggest OEM sells 300M phones every year. Which is less than 1/3 their income means they could survive for years with other products. Apple has no other products. The iPad and ztouch together in sales won't be enough. Yes they another like Nokia and RIM too. Blackberry services are useless for the most part with phone users. Android is the platform that would survive the longest time if this market stalls.

31. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

So did RIM and Microsofr.

36. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

The big difference between Apple and Nokia is cash on hand, Profits. Apple has over $200 billion dollars in cash. The smartphone market will slow down, but it's not going away. App!e will get the lion's share of the profits. That's the difference between Apple and Nokia. Profits.

38. TBomb

Posts: 1662; Member since: Dec 28, 2012

Still, Apple will feel some of it. There's a reason they put a lot more into R&D this last year versus any other year prior. They will start feeling the heat at some point.... They're going to have to keep introducing new products that only iphones can sync with if they want to keep it up forever... The minute they stop, they'll start to dwindle. (personal opinion) However, Techie does have a point. without the iPhone, what is Apple? itunes... but without the iphone, itunes is nothing sicne no one has an ipod anymore (except me) because phones have all the music they need. The problem i see is Apple's products don't play nicely with any other companies products... the iphone is the heart and soul of iOS and everything that connects to it and it is very important to keep those sales high because if those sales fall, everything else goes down with it because nothing will play nicely.

10. AlikMalix unregistered

It's finally here. Proof that even Apple cannot magically beat unrealistic expectations all the time. I bet this is apples strategy all along as an attempt to bring them anal-ysts back to earth. I expect Apple to react with iPhone 7 - or a new product to turn the tides. But mark my words - if iPhone 7 still keeps the aged iPhone bezels and ugly camera bump - I'm gonna try Samsung again. Samsung looks better, their mobile pay is more compatible (as long as they add my bank by then). And I like the s-pen a lot. I'm hoping marshmallows doze and app permissions work well like iOS. And bloat is removable entirely. Any ways glad Apple feels heat - let's see what they'll do - I've been waiting for this!

18. tedkord

Posts: 17463; Member since: Jun 17, 2009

Competition always benefits us, the consumers. But two way competition isn't enough. We need a realistic third horse in this race. Someone please resurrect WebOS, and this time mate it with compelling hardware.

27. AlikMalix unregistered

You got my vote.

28. TBomb

Posts: 1662; Member since: Dec 28, 2012

Need the apps for there to be any 3rd party player in OS... Microsoft could have it.. but they lack a lot of apps that are on almost every other phone. It's not microsofts fault per say... but it's just not gonna happen unless someone comes in with enough money to buy every app dev company into building for their OS. ^^Personal opinion.

35. AlikMalix unregistered

I like the feel and look of Windoes phones. The only reason I'm staying away (apart from exclusive iOS features) are apps. I know there are many alternatives but not enough especially games that I play. Come on MS? maybe make some incentives or easier App developing kits. We need a third.

33. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I'm confused now. Most of the time you sound like a fan. Today you sound like a bystander making a non-biased comments. I do agree it takes something bad to make companies do better. But factually bad already happened. Steve Jobs claimed when they released the iPhone they were 5 years ahead of everyone else. 2 years later Android came and double almost every year consistently for 3 years in a row and past apple in activation shortly afterwards. In 2011 when the Galaxy Saturday arrived, Samsung become the first OEM with the balls to challenge Apple on their same level. HTC did that for 2p10 with the Evo, but they screwed up afterwards. Then Samsung brought the Note and started the trend of making monster phones that now everyone has. The rules were rewritten and everyone has taken some bites out of Apple with Samsung taking the biggest after leading all Android sales after only 2 phone models. Apple advantage is iTunes and locking you in and not being compatible with others. Samsung is now about to open a door that will allow their stuff to work with iOS. Basically Samsung is at taking Apple from the inside. Millions of people with iPhone who see the S2 for example which costs less offered better features and looks better too can now have platform interoperability. This is what made Microsoft king, what made Android king and why closed less flexing platforms will always lose. If Apple wants the iPhone to remain mainstream for the next 5 years, they have to make some huge changes.

34. AlikMalix unregistered

There are a lot of lies in your post, and some subjective views stated as "fact". If you rewrite your post without blatant bias - I will reply to you like a human being. But if you trail my posts, you'll see that the ones that are fanboy rants only follow posts that are basically trolls and specifically calling iOS users stupid, sheep, blind, and only buying iPhones as a fashion statement or something. Other than that if you find Apple products unfit for your needs - doesn't mean that others don't find value from how Apple sets up their devices. Apple has a certain vision for their products, some understand it - some don't, some understand it, but don't like it, it's fine - but Apple success does not come from doing everything wrong as you and others make it seem, or just some token of fashion - it's a really great product that finds more buyers by millions every year (including millions that have been using android before). Apple didn't sell less phones this time around, they sold less than predicted they would. Don't mix this up! Because if you don't know the difference, you'll actually believe that Apple is doomed when they had the most profitable year. do you really want to face hundreds of millions (that X•100,000,000) people and tell them they're wrong to buy an apple device, because on android you can change your icons and fonts? You have to be smarter than that, right?

37. Zylam

Posts: 1822; Member since: Oct 20, 2010

Techie is incapable of being a normal person. Just ignore him like Dj and the rest of us have. I don't bother replying to him either but you it's awesome how you took him apart from the inside! But yea you're right, it's amazing, the time has arrived when even apple will feel the pressure, however I have a feeling these guys knew this day would come right around this year as each new iPhone has been almost upgraded with just enough to get it by, however now they will really push the envelope further. Also I have a feeling iOS will get a major redesign this year and this time won't look so kiddish, hopefully.

11. AkoSiKuting

Posts: 88; Member since: Dec 09, 2015


20. tedkord

Posts: 17463; Member since: Jun 17, 2009

Yeah, second best isn't bad at all.

22. HonestRealist

Posts: 196; Member since: Jan 25, 2016

Second best? Because of that tiny enterprise value lead Alphabet recently acquired? Well, Apple still has the highest market cap in the world, they also have the most money in the bank, combine them both and that's almost $1trillion worth of winning. No other company can come close.

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