Tomorrow, Apple will report its first decline in annual revenue since 2001

posted by Alan F. / Oct 24, 2016, 9:55 PM

Tomorrow, Apple will report its first decline in annual revenue since 2001

Tomorrow, Apple will release its fiscal fourth quarter earnings for the three months that ended in September. And for the first time in 14 years, annual revenue will decline on a year over year basis. Wall Street is expecting Apple to report $215.67 billion in sales for fiscal 2016. That will be a decline of $18.05 billion from the previous year.

The last time Apple had a year-over-year decline in revenue was back in 2001 when it reported $5.36 billion in sales; that was a 33% drop in revenue from the $7.98 billion it reported in 2000. Wall Street is looking for Apple's sales to bounce back in 2017 with $225.66 million of revenue expected.

Will Apple be able to restart the amazing run it had from 2000 to 2015? That is not something that can be answered so easily. Hopefully the company will be able to regain its sales momentum.

source: VentureBeat

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39 Comments

1. htcisthebest

Posts: 435; Member since: Nov 15, 2011

"Hopefully the company will be able to regain its sales momentum." Such a blind fanboy comment from the writer. This is example of bad editorial, where the writer makes subjective claims.

posted on Oct 24, 2016, 9:59 PM 20

4. justrt

Posts: 446; Member since: Jul 10, 2014

Thank you. That line makes a really bad impression for real.

posted on Oct 24, 2016, 10:05 PM 12

19. Zylam

Posts: 1813; Member since: Oct 20, 2010

It's normal for articles to say lines like "hopefully they recover" You're the blind fanboy making a mockery of things, what still hurt about the Note 7 blowing up and Samsung names being dragged through the dirt? Phone Arena has said similar things for HTC and other OEM's, saying things like hopefully they recover etc. You Apple haters are the original blind fanboy's/sheep, everything you say about other people is ironically exactly what you are. I've been here since the Nokia Nseries days and it was SE vs Nokia back than, and there were fanboy fights, however it was nowhere near the kind of personal insults the Apple haters spew out these days. It's your kind that's the problem, not the actual fans of brands.

posted on Oct 24, 2016, 11:09 PM 11

22. Podrick

Posts: 1284; Member since: Aug 19, 2015

So everyone who hates Apple is a blind Samsung fanboy? Thats a dumb logic. That person might hate both of them. How can you say he's a Samsung fanboy? "however it was nowhere near the kind of personal insults the Apple haters spew out these days." As personal as the hate you've got against Samsung and its fanboys. Your "karma" comment on Note 7 explosion articles and "Samsung fanboys are the worst" comments. You accuse others for having personal hate against Apple yet you do the same against Samsung. You sir are a hypocrite.

posted on Oct 24, 2016, 11:33 PM 17

33. Macready

Posts: 1815; Member since: Dec 08, 2014

Hopefully recover when someone is very sick or continuity of thousands of jobs could be at play. Here we're talking about a few percent less than 220 billion (....) sales for a company with enough cash to buy a few countries. How is it normal to wish for more as an outsider or consumer? Let's keep things in context here.

posted on Oct 25, 2016, 2:29 AM 2

35. ebilcake

Posts: 1227; Member since: Jul 16, 2016

Not exactly, there are better ways to phase it which don't imply personal interest in the companies success, it's just bad writing. e.g. "Apple will be hoping to regain its sales momentum"

posted on Oct 25, 2016, 3:06 AM 1

41. PrYmCHGOan

Posts: 335; Member since: Sep 28, 2016

And you are a stupid moron for thinking, everyone who dislikes Apple, has to be a Samsung fanboy. You are worse than the people you "think" you are talking about. That and the 14 idiots who agree with you. Liking Android over IOS, doesn't mean you like Samsung. As far as Samsung issues, who cares if they get dragged in the mud. All OEM's do at some point. Oh wait, except your beloved Apple. At least with Android, we never have to like just one OEM. Samsung is the best. They makes 100's of products. Havign one or 2 have issues, isn't goign to bring them down. That is how stupid and ignorant you and yoru kind are. You hate Samsung so much, you think one phone, that isn't even a flagship is goign to rip them apart. No matter what phoen this had happened to, even if it was the cheap ass J series, because Samsung is popular and at the top, the reportign would ahve been the same. One product has never in histroy brought down any company, unless it was the only product they made. if this had been Apple, Apple would have hurt far more since 70% of their income is from the iPhone. For Samsung, smartphones represent less than 1/3 the money they make. Just shows who actually is the sheep. Go look in the mirror you dumb...

posted on Oct 25, 2016, 9:35 AM 0

25. DavidDau

Posts: 30; Member since: Oct 24, 2016

Is it bad if someone wishes for a continuing development of a company?

posted on Oct 24, 2016, 11:53 PM 0

32. Macready

Posts: 1815; Member since: Dec 08, 2014

Let's keep things in their context. A few percent lower sales isn't going to jeopardize the development of or within a company when they still sell about 200 million phones a year and sales are in the hundreds of billions. A healthy correction, at the worst. That "momentum" means owning the high end market and doesn't benefit competition, nor the customers.

posted on Oct 25, 2016, 2:22 AM 4

31. Macready

Posts: 1815; Member since: Dec 08, 2014

Yes, true colors shining through right there. It's something to wish for cool phones to keep coming out. It's something else to wish for a company to keep earning hundreds of billions from its customers. You know, those who pay, the readers here. Cool phones and hundreds of billions in sales aren't necessarily connected..at all. In fact, having little competition leads to the opposite: lazy developers and overpricing.

posted on Oct 25, 2016, 1:58 AM 3

39. Subie

Posts: 2348; Member since: Aug 01, 2015

Ok, but when was the last time you read a PA author wish the opposite for a any company.

posted on Oct 25, 2016, 5:17 AM 0

2. CreeDiddy

Posts: 2143; Member since: Nov 04, 2011

All good things must come down. Apple is still more profitable and could buyout Android even Android was a company. Apple isn't hurting. Their holiday quarter will make up for the loss.

posted on Oct 24, 2016, 10:00 PM 7

11. Klinton

Posts: 1408; Member since: Oct 24, 2016

Do you mean: 'iOS could buy Android even both were a companies'?

posted on Oct 24, 2016, 10:24 PM 1

3. jeroome86

Posts: 2314; Member since: Apr 12, 2012

3,2,1, and here we go.

posted on Oct 24, 2016, 10:02 PM 1

5. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

In away, we could see this as a good thing. It will force Apple to get creative with their next product. Despite being an Android Fanboy, I enjoy watching Apples products every year. It is not for me but I still enjoy them.

posted on Oct 24, 2016, 10:06 PM 15

7. kiko007

Posts: 7493; Member since: Feb 17, 2016

I am of the same thought. Maybe this'll light a fire under their shorts....

posted on Oct 24, 2016, 10:08 PM 0

13. Klinton

Posts: 1408; Member since: Oct 24, 2016

Wrong. Apple should think harder, how to get more profit without spending money for buying new expensive tech or innovations. Something like Night Mode, Life Pictures, new fancy color, new connector... or so, wouldl be better bet.

posted on Oct 24, 2016, 10:33 PM 0

6. NarutoKage14

Posts: 1318; Member since: Aug 31, 2016

$215+ BILLION in a quarter, that's nearly $1 TRILLION a year. Forgive me if I'm not super sad that they didn't make all the literal boatloads of cash they wanted to. They still made plenty of profit and have the income and bank account to keep going for a long time. Nothing else to see here.

posted on Oct 24, 2016, 10:08 PM 4

14. Klinton

Posts: 1408; Member since: Oct 24, 2016

Agree. Even Note7 is out, and Samsung is on their knees. Apple FTW

posted on Oct 24, 2016, 10:37 PM 0

21. Tyrion_Lannister unregistered

Revenue is not profit.

posted on Oct 24, 2016, 11:32 PM 5

23. Mimas

Posts: 22; Member since: Mar 29, 2013

Not quite - they're releasing the fourth quarter earnings but the $215 billion figure is for the 2015/16 fiscal year.

posted on Oct 24, 2016, 11:49 PM 0

24. DavidDau

Posts: 30; Member since: Oct 24, 2016

The article said it was $215 billions revenue for a fiscal year report, not a quarter report.

posted on Oct 24, 2016, 11:49 PM 1

30. Macready

Posts: 1815; Member since: Dec 08, 2014

That 215 billion is for the whole year.

posted on Oct 25, 2016, 1:50 AM 1

8. justrt

Posts: 446; Member since: Jul 10, 2014

Hopefully more money will go to other cell phone manufacturers so we can see a better competition.

posted on Oct 24, 2016, 10:08 PM 2

9. kiko007

Posts: 7493; Member since: Feb 17, 2016

That's not how revenue works friend.....

posted on Oct 24, 2016, 10:17 PM 2

15. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

If they buy a phone from another manufacturer/platform instead of an iPhone, that's exactly how it works.

posted on Oct 24, 2016, 10:45 PM 7

20. Zylam

Posts: 1813; Member since: Oct 20, 2010

If the whole industry is in decline (which it is, people are keeping their phones for longer) then it's even worse for other OEM'S. If the most popular product is losing sales than what do you think will happen to other vendors who found it hard to sell against the iPhone when the industry was booming? Like somone said above, Apple knows the mega boom is now reducing, they need to really push the innovation to keep people interested, which is good for all of us.

posted on Oct 24, 2016, 11:14 PM 0

29. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Or maybe people are going a lower priced route. Rather than spending $600+ on devices, instead they're going with something in the $400 and below range. It's not like it was 5 years ago where the only way to get decent performance is to buy a flagship phone. For many regular people, the difference in performance between a lower to midrange device vs a high-end one isn't a huge difference like it used to be. And if people can get near to the same performance spending half as much, they'll probably go that route. I'm not referring to the fanboys or techies, I mean the general public who need to get help setting up their voicemail. Where they might have gone with a top of the line device before, they might check out more affordable offerings now. But just to say that if Apple's losing a little, them everyone else is worse with nothing but supposition isn't showing an accurate picture. For one thing, Samsung was on its way to a healthy year before the Note 7 issues arose. So it's not just cut and dry.

posted on Oct 25, 2016, 1:13 AM 1

17. cncrim

Posts: 1586; Member since: Aug 15, 2011

"Hopefully"? I hate to said this but I don't think it will happen if other manufactures cant come up with something groundbreaking and break through technology. Remember, If Apple didn't come up iPhone we might still stuck with Nokia N90xx or Classic Blackberry. As long as, other manufactures keep come something like faster CPU and GPU things, guess what I said we are at the plateau...... if that is the case I don't think you will see Apple demishing its dominate in smartphone at all. Whoever can come up the next innovation don't have to be big but need to be reduce complexity and to be more simpler than what we have today. I found smart phone today is much better than before however it getting more and more cumbersome lately. And last but not least battery life, i could be nice if we can charge the phone 0-100% in 5mins.