Skip to main content

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.


Popular posts from this blog

F1: Robert Kubica Impresses In Renault Test Run

The car may be old but its the performance of the driver that's the story here. Robert Kubica returned to F1, after a fashion, earlier this week with an extensive test run in a 2012 Lotus Renault F1 car at Valencia.
The age of the car and the circuit were likely determined by F1's current rules which ban testing, but the reason for Kubica being in the car is far more interesting. Considered by many to be a potential World Champion and certainly one of the fastest drivers of his generation, Kubica's F1 career seemed to be over after a 2011 crash whilst driving in the Rally of Andora. His Skoda Fabia was penetrated by a guardrail in the high speed accident partially severing his right arm.
Up until last year Kubica has been competing in rallying, with the expectation that the limited movement in his repaired arm would prohibit a return to single seater racing.
So this week's test is both interesting and confusing. Interesting because Kubica completed 115 laps of the ret…

Panos Panay's Defence Of Microsoft Surface Hardware Sounds Eerily Familiar

This weekend I went out with my ten year old daughter to select a laptop for her school year beginning in January. The schools requirements are quite specific, requiring a Windows 10 device, with a preference for a touchscreen and a stylus. She chose a Surface Pro, after trying a large number of different options. Having seen the way I use my own Surface Pro - and tried it herself there was only ever going to be two options - and the other was a Surface Laptop.
I tell you this so that you understand I am a buyer of Microsoft's products through choice, not compulsion. I'm on my third Surface device now. 
So when Panos Panay dismissed reports of the death of the Surface hardware line, I was very interested to see exactly how strong these denials were. Especially how they reflect what has gone before. To whit: Windows 10 Mobile.
Panay claimed that Microsoft is in hardware for the long haul. Almost exactly mirroring the words of Terry Myerson, when he claimed Windows Mobile was g…

WhartonBrooks Indiegogo Windows 10 Mobile Even More Doomed To Failure Than Usual

WhartonBrooks is currently crowd-funding its latest Windows Mobile smartphone on Indiegogo. If crowdfunding isn't already a bad enough idea, a company trying to crowdfund a Windows Mobile device should be warning enough for you.
Not that anyone seems to be taking the project too seriously. With a few weeks left to run the campaign has managed to ensnare just 2% of its $1.1m target.
If you want a better indication of how few Window Mobile loyalists remain I doubt there is one. Of 3,900 Windows Phone enthusiasts Wharton Brooks was seeking for its new phone, it has managed to entice just 50.
Windows for Phones is dead, even if the corpse hasn't stopped twitching yet.