For the first time since Apple launched its game-changing iPhone 12 twelve years ago, the seemingly unstoppable mobile juggernaut has announced a decline in sales.
Apple has recently announced its fiscal findings from the Second Quarter of 2016, with surprising results. iPhone sales have dropped to 51.1 million units, in the first three months of 2016. This is a decline from the 61.1 million units Apple sold in Q2 of 2015.
Things aren’t boding well for Apple, with the company anticipating a double-digit decline for the current quarter as well, with a predicted target of between $41 and $43 billion for Q3, which will end in June, coming in at significantly lower than analyst’s predictions of $47.3 billion.
Apple stocks have seen a similar decline, falling 6% per share, in the Second Quarter of 2016.
Despite the grim findings and predictions, Apple CEO Tim Cook remains optimistic, with a number of innovations rumored to roll out, throughout the year.
The decline in sales may have more to do with larger global trends, like market saturation. We’re finally reaching a point where everyone who wants a smartphone already has one. A sluggish economy in China, which is one of Apple’s most important markets, has also been attributed for flagging sales.
Apple is stemming the tide, and trying to bolster profits, by continuing to roll out a series of wearable devices and music streaming services throughout the year, which should help, although not being as profitable for the mobile manufacturer as iPhone sales.
To further quiet criticism, Apple is increasing the quarterly dividends of its shareholders by 10% a share. Apple’s also planning on buying back a large portion of stocks, increasing its spending by 25%, to $157 billion.
It should be interesting to see what happens with Apple, over the coming months.