Apple Bleeds Red: Annual Profits Decline 1st Time in 15 Years, But iPhone Sales in India Increase by 50%
Since 2001, Apple has been declaring an increase in sales and revenue every year; but the good spell has been broken in 2016. For the first time in 15 years, Apple has posted a decline in sales, revenue and profits, thereby triggering panic among its shareholders.
On the other hand, Apple’s story in India is becoming stronger, as it witnessed an increase of 50% sales of iPhones here. This means that in 2016, India was the only major market for Apple which showcased a positive growth.
Apple’s 4 Quarter Results: Loss In Revenue & Sales
Apple’s fiscal year ended in September, 2016, and as per the latest data released by them, they sold total of $215.6 billion worth of iPhones, Mac and other products in this period. This is an decrease of 8% compared to fiscal year ending September 2015, when they posted sales of $233.7.
This directly impacted their profits as it fell 14% to $45.7 billion.
In the last 15 years, this is Apple’s worst ever performance.
For the last quarter ending September 24th, Apple’s overall sales decreased to 9% to hit $46.85 billion, which is Apple’s 3rd consecutive fall in quarterly sales. Due to this, their profits for this quarter also decreased substantially to reach $9 billion, which is 19% lower than the same period last year.
iPhones, which are Apple’s most crucial product, experienced 5% decline in sales for the last quarter, as only 45.5 million units were sold in the quarter ending September, 2016.
Interestingly, Apple has forecasted that they will sell turnaround the gloomy picture, and will sell products worth $76-78 billion in the next quarter, which seems realistic considering the holiday season is coming up. If it manages that, then it would be 1% increase in Apple’s sales/revenue compared to 2015.
Despite loss in revenue and profits, cash reserves of Apple has increased to $237 billion, up from $231.5 billion last year.
India Records 50% Increase in iPhone Sales
As Apple’s sales are declining everywhere else, India sales experienced a surprising 50% increase year on year, for the fiscal year ending September, 2016.
Tim Cook, CEO of Apple said, “Our iPhone sales in India were up over 50% in fiscal 2016 compared to the prior year, and we believe we’re just beginning to scratch the surface of this large and growing market opportunity,”
In the overall smartphone market, Apple accounted less than 2% share, as Samsung once again become #1 company to grab the market share.
Apple is excited about their partnership with Jio, and is expecting more sales in India, rather than China.
Cook said, “I think it’s clear that the population of India will exceed China sometime in probably the next decade or so, maybe less than that. I think it will take longer for the GDP to rival it, but that’s not critical for us to have a great success there..”
It would be interesting to observe Apple’s next strategic move in India, which is recording maximum growth globally for them. Market speculations are rife that they can decrease their prices in India for pushing more growth.
We will keep you updated as more details come in..