Apple is scheduled to report the company’s earnings – some $18.2 billion – for the last quarter this year, marking the firm’s largest profit in its corporate history and of the country as well.
However, when you compare the past quarter’s earnings for Apple with that figure set in the same period of 2014, you will conclude that the growth is only 1 percent. Therefore, the past quarter growth of Apple earnings has been dwarfed by the incomprehensible rise in Apple revenues last year, as Tim Cook liked to put it.
But times have changed now, and there has been a tectonic shift going on in the smartphone landscape, caused by a slowdown in smartphone demand in various parts of the world, most notably China which represents the biggest tech market.
Analysts are increasingly concerned about the future awaiting Apple through the fiscal year 2016, and what lies ahead for investors despite the fact that the sales of iPhone devices is projected to hit its peak when the earnings report will be made.
While everything else surrounding the Apple earnings is still unclear, there is one thing that stands certain in the midst of it, that the company’s current quarter ending in March will pose a year-over-year drop. But as to how much of a decline the company will see has yet to be seen.
There are varying numbers emerging that predicts the decline in the number of iPhone sales, some pessimistic while others retaining a slight sparkle of hope. But majority of forecasts throughout 2016 all point to a tragic fate awaiting the iPhone. Analysts have a consensus that the units of iPhones that will be sold this year will drop dramatically. Only a few months ago, everybody would think it unthinkable for iPhone sales to plummet, but Wall Street analysts now think it probable anytime sooner.
The basis for these predictions did not come out of nowhere. Apple’s suppliers for chips and other components of the iPhone handsets have largely reduced the production rates, providing a glimpse into the declining demand for Apple products.
On the other hand, some analysts remain optimistic about Apple’s growth this year. One analyst claims the projected decline in iPhone sales this year might reflect a difference in the versions of iPhone sold in the market. The analyst also believes the cuts to production implemented by the Apple supply chain does not necessarily indicate a drop in the demand for iPhones. The reason for that could not be clear, the analyst insists.
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