Here at Gemini, we live and breathe all things technology. We think that one of the most inspirational companies in the technology industry for its innovative and ground-breaking nature is, of course, Apple.
We were somewhat surprised to read last week about the fall in sales of the latest iPhone.
In its third quarter, Apple reported selling 45.51 million iPhones in the three months to 24 September, beating an average estimate of 44.8 million. The tech giant also forecast higher-than-predicted holiday season revenue of between $76bn and $78bn. But revenue in the fourth quarter fell 9% to $46.85bn. That meant annual revenue fell for the first time since 2001, highlighting a slowdown in the smartphone market as well as intensifying competition, particularly from Chinese rivals.
Apple's Chief Executive Tim Cook has chosen to look on the bright side however - pointing to the 24% rise in income from services like Apple Music and Apple Pay. He has said that he was thrilled with the response of customers to the iPhone 7 – and that round the world, including in China, demand was outstripping supply (despite fourth-quarter revenue falls in China and the Americas – its two most important markets).
But the current quarter’s sales are likely to benefit from Samsung’s recall of the Galaxy Note 7, due to a fault that caused some devices to catch fire. Telecoms companies actually offered Note 7 customers the opportunity to trade in their phones for rival devices such as the iPhone.
Some tech analysts have commented on the recent news, saying that the world has reached ‘peak Apple’, meaning nearly everyone who wants (and can afford) an iPhone or other products already has one.
Speaking to The Guardian, Thomas Husson, an analyst at Forrester Research, said: “It will be key to get early performance indicators of how well the new devices sell ahead of the holiday season. It is especially important in non-western markets like India where there is still significant growth. Overall, Apple is still significantly dependent on its iPhone product line but I would expect again a massive growth for new services like Apple Cloud, Apple Music or Apple Pay.”
What do you think about the decline in iPhone sales? Have YOU reached ‘peak Apple’? If so, why? Comment below and let us know!