Apple Revenue Falls for the first time in Over a decade

Apple by Mikhail (Vokabre) Shcherbakov (CC BY-SA 2.0)

When Apple announced its quarterly earnings on Tuesday, there were more head shakes than fist pumps as the American Tech Giant made an announcement which wasn’t expected: a fall in its revenue for the first time in over a decade.

At the same time last year, Apple had recorded a revenue of $58-Billion. However, this time, around they are down 13% with a reported revenue of around $50.56-Billion. This, in simple words, means that there were far fewer iPhones sold in the last quarter than in the entire history of the American Tech Giant.

Looking at the gray areas and China comes as one as the sales of Apple iPhone fell down by 26% in the Asian Company. Regarding weak sales in China, many are suggested that Apple suffered the bump due to stronger dollar prices in the region which skyrocketed the prices of iPhones.

As you might expect after such revenue announcements, the shares of Apple fell down by 8% within hours after trading today. Looking into the overall impact and the shares of Apple have fallen down more than 20% in the last year.

While we might argue that a weak showing in one-quarter should not be a big problem for Apple, the main problem for Apple is that it is the Chinese Market which has resulted in the recent slump.

In the last few years, there were reports of a slowdown in the sales of iPhones in the established markets of Apple. However, in all those testing times, the Chinese Market came to its rescue by its ever growing demand for Apple’s hardware.

Thus, at a time when its most trusted market has given way, Apple desperately needs a new hit to perch its earning above its competitors. And unlike the last few years, many are expecting that it will be the Apple Watch that could fill the void in the next few months.