Apple Q2 Results: iPhone Down, iPad Down, Mac Down
Turns out Apple isn't immune to the tech slowdown after all. In its Q2 results Apple reported an unprecedented sales collapse with year on year sales down in every one of the companies key product lines.
The biggest shocker is the rate of collapse of iPhone sales. 10 million fewer find buyers than this time last year, with sales hitting 51 million. It's possible that the huge success of the iPhone 6 inflated last year's numbers, and the iPhone 7 will do the same in a years time. Still, to see Apple's number one product hit the bumpers so forcefully must be a concern and might be an indication that we'll see more cheaper iPhones in the future.
The iPad has been something of a car crash for a while now. This quarter sales dipped even lower, despite the introduction of new iPad Pros and Minis. At a time when Microsoft is seeing Surface sales booming Apple's refusal to build a true hybrid looks short sighted.
Interestingly Mac sales are down too, probably as a result of some cannibalisation by the larger iPad Pro. At the moment Apple is selling five iPads for every two Macs it moves on. Until this quarter those two numbers were converging quickly. They're still converging though.
As all three product categories registered bigger hits than their respective market sectors the results amount to Apple's worst quarter in more than a decade.
The only bright spot was an increase in revenue for the services side of the business - driven by news that Apple Music now has 13 million subscribers. However still no concrete figures on Apple Watch sales - which I find to be another worrying indicator, if ever an Apple financial report needed some good news on Watch sales this was the one.
Still, all the doom and gloom around a quarter where Apple added another $10bn to its cash stockpile seems a little over done. That $230bn war-chest should be more than sufficient to allow Apple to regroup if there's an extended period of falling sales.
Let's face it, other than Samsung, there's nobody else out there turning over fifty million phones and ten million tablets every quarter. So in the wider scheme of things this isn't anything like bad news.