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Apple Shares Down 8% on Fall in Sales

In the second quarter of this financial year, the revenue of the US high-tech giant Apple fell by 12.7% in comparison to that of Q2 of 2015, standing at a $50.6 billion. This is of especial significance since it is the first time that Apple has seen a fall in revenue for the past 13 years.

Weak revenue has become the reason the company’s net profit has fallen by 23% to $10.5 billion in comparison with the same period in 2015. On this news, Apple shares fell 8% and the fall is continuing today, shedding almost another percent. The company explains this via unsuccessful iPhone sales which fell in Q2 of this year by 16% and the even more unsuccessful iPad sales which have fallen 19% YoY.

Geographically, Apple sales have seen the biggest fall in China where sales have fallen 26%. Even at home Apple hasn’t been doing so well, with sales in the US during Q2 fell by 10%.

We believe that the reason for Apple’s failure is related to the partial updates for iPhone in tandem with a fall in the hype around the iPhone, leading to a reduction in consumer interest in new models of this smartphone. Economic problems around the globe haven’t aided sales of the expensive gadget either.

21 September, 15:53 (GMT+3)
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Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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