Apple Earnings Drop for the First Time in 15 Years

For the first time in the last 15 years, technology behemoth Apple earnings have registered a substantial decline.

According to its earnings report for the fourth quarter for the year ended September 24, Apple raked in $46.9 billion. Those figures are down when compared to the same period last year where the company earned $51.5 billion. In terms of profit, Apple ended the quarter this year with $9 billion which is a drop from $11.1 billion last year.

Looking at the entire fiscal year, Apple generated $215.6 billion in revenue and $45.7 billion in profits. In comparison, last year’s numbers were $233.7 billion and $53.4 billion respectively.

A possible major factor contributing to the low Apple earnings report concerns the number of iPhones and other devices sold. Close to 45.5 million iPhone devices were sold during the last quarter, compared to 48 million units during the same period last year. The new iPad garnered relatively less interest from consumers, falling to 9.27 million units sold from last year’s 9.88 million. Macs got hit the hardest, selling 4.89 million units compared to 5.7 million for the same quarter last year.

“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” announced Apple CEO Tim Cook. “We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus, and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record.”

The company’s new iPhone 7 officially hit shelves on September 16 in the United States and is now available in other major territories as well. Nintendo is working on a new Mario game for iOS which will be in the form of Super Mario Run. Details are scarce except for the fact that it’s scheduled to release sometime in December.

Several industry analysts believe that the yearly cycle of production is only hurting the company in the long run. Should Apple extend the gap between new devices?

About Saqib Mansoor 406 Articles
The odd man in the group who hates chocolate, cheese, and having to work on Sundays.