Last Updated on January 26, 2016
From earlier today before Apple’s Q1 Earnings call:
“When CEO Tim Cook reports Tuesday on Apple’s sales for the last three months of 2015, investors will be watching closely for any hints about how Apple’s signature smartphone is faring in the current quarter. Sales usually fall somewhat after the holiday shopping season. But analysts say it appears Apple has cut production orders from key suppliers in recent weeks, suggesting it’s lowered its own forecasts.”
And from just now after the earnings call regarding the upcoming Q2 2016:
… The company expects to report between $50 and $53 billion in revenue. That would put it below the $58 billion it reported in Q2 2015 and would mark the first year over year decline in revenue for the company in years.The slight decrease can likely be attributed to falling iPhone sales, which have been predicted for some time now. In Q1, Apple reported sales of 74.7 million iPhones, which is just barely better than the 74.5 million it did in the same quarter last year. Apple did not say how many it expects to sell in Q2, but analysts have predicted declines as high as 25 percent.
Apple sold an average of 34,000 phones per hour for 13 consecutive weeks. That’s incredible, but unsustainable, growth. If anything, Wall Street loves growth. With China’s economy on a rapid downturn and the U.S. economy weak due to a number of variables that could lead us into a potentially havoc Spring, Summer, and Fall, Apple is wisely hedging its bets on production. That’s especially wise since carrier subsidies for new devices are now non-existent in the U.S. and each new iteration of the iPhone undergoes a “meh, it’s not that different from my old one” period with potential upgrading users.
If nothing else, we’ve learned today that the media loves using the term “Peak iPhone” (give the term a google if you’d like to see).