iPhone Sales Decline for the First time; Does It Indicate Apple’s Stagnation?
After years of strong sales has Apple's iPhone reached a deadlock? On Tuesday, Apple Inc posted decline in sales numbers for the very first time for its iPhone.
It is more striking because that's the first slip in revenue in the last thirteen years. The company that makes the popular smartphone is now struggling increasingly with a saturated market and mounting competition.
In China, the sales numbers slipped more than one fourth in the quarter. China is the second most important market for iPhones following the United States. The company also forecast one more disappointing quarter with lower global revenues.
Apple's shares dropped approximately eight percent, moving under the $100 mark for the first time in more than two months since February. The investors were not that cheerful even with an increase in the company's share buyback and dividend program as well as well the bumper revenue generated from services. Apple is not along in the line, on Tuesday there were disappointing results from Microsoft Corp, Google's parent Alphabet Inc and Twitter.
Apple reported selling 51.2 million iPhones in its second fiscal quarter, which is a slide from 61.2 million last year.
Investors fear the slip in iPhone sales indicate that it has reached saturation. Neil Saunders, chief executive of research firm Conlumino said, "Apple needs to come up with a radical new innovation or product rather than just the current incremental improvements to existing products. This is the only way in which it will reinvigorate sales growth."