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IPhone sales collapsed record – Technology



Apple's problems with iPhone sales have been far more serious than expected. The company has reported disappointing results for the last quarter, which is traditionally the most active for Christmas holidays. However, iPhone sales have fallen by 15%.

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This was well below expectations from analysts and investors. As a cover, Apple also lowered its forecasts for the next quarter, expecting iPhone sales to fall by as much as 10%.

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Apple gives several reasons for what is happening. First of all, the company points to the strong dollar that raises the price of the iPhone in emerging markets and refuses users. In addition, operators offer ever smaller subsidies for new handsets, which means that consumers are paying more. Third, Apple's own program for cheaper replacement of old batteries with new ones, which motivates people to keep their phone for longer. The company predicts that these factors will continue over the next few months.

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Apple also respected its decision not to give any specific results for the iPhone sold. According to analyst Bernstein, 66.6 million phone in the last quarter. This is also 15% less, as revenues from phone sales have fallen, just under 52 billion. dollar notes CNET.

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Apple's total revenue for the quarter is 84.3 billion. dollar – a decline of just over 4% over last year. This was the good news that delighted investors because the overall decline was expected to be greater. The reason for the smaller decline is the good performance of the company's digital services. They reached record revenue of $ 10.9 billion, dollar – the highest in history.

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This shows that at least for now Apple has managed to find a winning formula for its digital services. The company has 360 million subscribers total for the various revenue-generating services. And the decline in iPhone shows that Apple is increasingly in need of alternative sources of income.

Still, it is the iPhone that provides the main share of revenue, and iPhone has already reached its peak. On the one hand this is expected and the trend has been visible for months. You can not ask for any product or service to be in constant growth. Investors seem to have resigned to the fact that this reality has come to an end with the all-powerful iPhone.

Over the last two years, iPhone's price has risen steadily, and technological innovations in it have not been as impressive as previous models, which have been doing a lot of good work for consumers. So for them there are less and less arguments to change their phone every year, but more and more reasons to keep it for longer.

This is a problem for all Apple hardware products and for other companies. That is why they are increasingly focusing on the digital services and subscriptions they hope to balance their revenues.

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For some companies, this is not such a problem. For example, Microsoft, Google, and Amazon see hardware as an additional source and means of advertising among its bigger fans. For Apple, however, which has been relying on devices for decades, switching to a service company may be coming later. It still has huge financial reserves, so it is far from serious stability problems, but if it wants to secure its future, it needs to quickly start showing action.

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