Apple Faces First Annual Revenue Drop Since 2001
Despite the hype for Apple Watch and iPhone 7, it was not enough to keep Apple on track their yearly targets. This year, Apple has suffered its first annual revenue drop since the year of 2001.
Business Insider shares that this fiscal year’s revenue has amounted to $215 Billion, which is 8% drop from the previous year’s $233 and marks the first drop in revenue for the company since the year of 2001. Looks like even giants on the market can fall, but will they fall hard or is it just a little sway out of which they will manage to recover? To answer these questions, a more in-depth and thorough view of the company, its products and politics must be made, because it is a highly complex question.
Fox Business shares that maybe, things are not as scary as they seem. At first, the decline of the yearly revenue is due to the falling sales of the company’s leading product, the iPhone. Certain modifications on the model, or realization of a new, innovative product on the market will manage to bring the company back on track.
After all, even though declining in profit, they are still the most high-grossing U.S company, with a net income of $45.7 billion for the fiscal year that has just ended. Still, the winter holidays are coming and Apple have set their eyes on realizing their sales to full potential which is expected to bring about $78 billion, which is higher than the expected profit realization of $74.9 billion for the same period just an year ago.
USA Today points out that the defunct of Samsung Galaxy Note 7 may actually be an opportunity for Apple to bring about a rise in their iPhone sales. As readers may recall, Samsung’s new phablet was completely withdrawn from sales, as a malfunction in the battery caused series of accidents to its users.
With their main competitor out of the race, Apple are expected to fill in the demand on the market with their own products and increase revenue for the coming fiscal quarter.
