Apple revenue dip - realism required

Apple revenue dip - realism required

Apple’s latest set of financial results show the brand’s revenues are down on a quarterly basis for the first time in 13 years.

Mobile decided to analyse exactly what the implications of these figures will be on the business.

Remember where you are

As many have pointed out Apple’s performance has been significantly affected by the changing economic conditions in regions such as China. Just as we had to understand the success of the iPhone 6 and 6 plus in the context of strong appeal in the Eastern markets we must view this drop in global terms.

In the UK, Apple looks unlikely to relinquish its hold on the UK market at the moment. Britain’s appetite for the iPhone has been relentless ever since the product launched back in 2007. The question that most commentators in the UK will be asking is when, if ever, it will come to an end.      

Distorted expectations

Only Samsung rival Apple in terms of smartphone expectations and performance. However, since the launch of the iPhone 6 the numbers recorded by the American manufacturer exceed all others in the market. Therefore, it’s important to view and ups and downs in the context of record breaking performance, as Tim Cook has been keen to point out on more than one occasion.

The pull of the iPhone continues to be considerable, and if the major problem is a lack of people upgrading their products rather than choosing other brands, there are worse situations for the brand to find themselves in.    

Service vision of the future

A figure which has slipped under the radar in Apple’s latest results was the 20% year-on-year increase in service revenue. The manufacturer has been attempting to diversify its revenues for a while now and this is an indication that it is moving in the right direction. The latest results should services closing in on the revenue figures for both Mac and iPad.

The improvement has been coupled with a rise in revenues from other products including Beats headphones, Apple TV and the Apple Watch. The success of Apple in these other areas will be crucial to the future of the manufacturer.

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