Apple has officially released their second quarter earnings results for 2016 and for the first time in 13 years they are showing a decline in their year over year revenue. The results have Wall Street a little concerned.
March 26th marked the end of the second quarter for the corporate giants and they show a revenue of $50.6 billion compared to last year’s $58 billion. Their quarterly net income came in at $10.5 billion in comparison to $13.6 billion made last year in the same quarter.
So why the decline? iPhone sales are down about sixteen percent. Also declining in sales over last year is their Mac and iPad line. Other smartphone manufactures such as LG and Samsung that run Google’s Android operating system are giving Apple a run for their money by offering quality products at a lower price.
Fear not Apple lovers; CEO Tim Cook doesn’t seem to be:
“Our team executed extremely well in the face of strong macroeconomic headwinds. We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”
On the bright side of things the demand for the new iPhone SE was much higher than anticipated resulting in some orders not being filled, though the iPhone SE does not affect the fiscal quarter in question. The App Store and iTunes are also both doing very well for the Cupertino based company. iTunes now has over 13 million paying customers. Surprisingly enough, the Apple watch is also doing very well, outselling the iPhone in it’s first year.
Apple may be on a decline but they are still giants in the technological market. What do you think of Apple’s declining sales? Are you iPhone or Android? Sound off in the comments below.