California-based mega tech company, Apple has been faced a scare in the new quarter with falling revenue as compared to what they earned the same time last year. Also, their share prices fell at market opening, down 8%, though that stabilized later in the day.
With regard to revenue from product sales, last year in 2015 they managed to make a whopping $58 billion in the first quarter, though at the beginning of this year that amount dropped to $50.56 billion. According to the company’s account books, their profits this year were $10.5 billion though last year it was at $13.5 billion.
So, what was the cause of the dip in profits this year for Apple? As you may have rightly guessed, it was the number of iPhones that were sold to customers – a shocking 10 million less than what was sold last year. Apple has tried to make up the numbers by marketing the new iPhone SE.
In fact, China, one of the largest markets for the iPhone creators, has reduced their imports this year by a considerable 26%. In fact, there are many up-and-coming Chinese produced and manufactured phones that have similar functions to the iPhone but sell much cheaper and find markets in places where the iPhone once ruled, including Asian countries and their own hometown in the United States.
Whether it was the rocky economy at the beginning of the year or any other factor, but suppliers are letting go of their employees as markets are slowing down. Apple reduced the number of orders they place with these suppliers for the mighty iPhone, one of the largest selling products from Apple.
Tim Cook, CEO of Apple, tried to downplay the falling statistics, saying that the company is doing well in spite of what he termed the economic situation as “strong economic headwinds”. No one can deny that Steve Jobs’ Midas touch is slowly fading as the sun starts to set on the most popular product ever created by Apple.