Apple is arguably one of the most recognizable brands in the world. It has taken over the tech industry, with its exclusive operating systems and simply designed gadgets. It has fought against both veteran Android-based companies, as well as up and comers. Which is why, the decline in Apple's figures are coming as a shock to the public and its investors.
According to BNN, Apple's stock has declined by 6% in 2016, despite an overall industrial gain of 6.5%. However, that is not the most worrying figure the publication has put forther.
Reportedly, Apple's third quarter revenue could decline by as much as 17%, when compared to its third number figures in 2015. This year's expected revenue of $41 - 43 billion, though quite notable on its own, is much lower than last year's experience of $50 billion.
The decline is likely to be from the slow in iPhone sales. 63% of 3Q 2015 figures were from the 47.5 million iPhone units sold. On the other hand, the Cupertino-based company only sold 40 million units as of June this year. In addition, Apple's other products have failed to catch the losses that have resulted from the decline in iPhone sales. Last year, iPad and Mac units made up 9% and 12% of revenue respectively.
China, one of Apple's main territories, has taken a liking to locally produced phones. Unfortunately for the company, this means a great loss in market share. In fact, Apple's Chinese sales are expected to drop as much as 20% this third quarter. On the other hand, a great chunk of the 2015 numbers resulted from the $13 billion revenue experienced from Chinese sales.
Thereby, investors need to look into three particular factors, a Investor Place reports. Those are, iPhone sales, services and China.
The numbers above are enough proof that the iPhone is still Apple's breadwinner. There is a lot of pressure for the upcoming iPhone 7 to do well upon its release this fall. Meanwhile, Tim Cook has also started that there is money in providing accessories and services, as opposed to focusing solely on the gadgets themselves. In other words, Apple needs to start cashing in on apps, digital music and its other features. Lastly, Apple needs to take back their Chinese market share. It has gone through a lot of trouble, but is now poised to take on the Chinese smartphone manufacturers again.
