Apple predicts iPhone sales decline

Apple predicts iPhone sales decline

Apple is predicting the first slowdown in sales of iPhone for the first time.

Speaking on an investors call CEO Tim Cook said that supply constraints from the first quarter of last year had boosted last year’s figures and meant that this year’s figures would be adversely effected.

‘We do think that iPhone units will decline in the quarter’ he said, ‘we believe it's the toughest compare because last year’s quarter also had catch up in it from Q1. If you recall, we were heavily supply constrained throughout the whole of Q1 and so some of that demand moved into Q2.’

Cook added that market conditions would make it tougher for the brand in the second quarter of 2016: ‘Plus we're in an environment now that is dramatically different from a macroeconomic point of view than last Q2, from a currency point of view, from the level of which we've had to adjust pricing in several of these markets. And so it's really all of those factors that play in there and it's difficult to sort out how much is due to which one.’ (Transcribed by

Apple has seen strong sales of iPhone, boosting its financial performance since the phone’s launch in 2007. It attributed a 22% rise in revenue in the last quarter to the strong performance of the handset.

Positive first quarter results

The Californian brand revealed positive results for the first quarter of 2016 quarterly revenue of $75.9bn (£53m) and record quarterly net income of $18.4bn (£12.9m). The manufacturer’s gross margin was 40.1% compared to 39.9% in the year-ago quarter.

Addressing a question on iPhone reaching the point of saturation Cook was quick to say: ‘[on the] question on saturation, the metrics I see would strongly suggest otherwise. For example, almost half of the iPhones that we sold in China last quarter were to people who were buying their first iPhone.

‘And certainly if you go outside of China into the other emerging markets, our share is much lower and the LTE penetration is so low, I mean in some cases, it's zero, that it indicates to me that there's still a lot of people, a tremendous number of people in the world, that will buy smartphones and we ought to be able to win over our fair share of those.’ (Transcribed by




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