Apple: the decline in iPhone sales puts a chill despite record earnings – L’Express

Apple still beat his records. Turnover (+ 2% year on year, to 75.9 billion US dollars); net profit (+ 2% to 18.4 billion); and available cash (216 billion at end December).

Meanwhile, Tim Cook announced another figure ever seen, for the next quarter, ending in late March. Revenue is expected to decline year on year, for the first time in 13 years. It is expected that between 50 and 53 billion compared to the $ 58 billion recorded a year earlier. Sales of the iPhone, which derive its growth for years, also expected to decline, which would be a first since the product launch in 2007. Apple said Tuesday that the current quarter was expected to be one where the comparisons a year would be his worst.

Signs of slowdown

Sales growth of the iPhone is almost at a standstill. Apple has elapsed 74.8 million devices worldwide in the last quarter of 2015. This is only slightly better than the 74.5 million recorded a year earlier and the lowest increase since the release in 2007 the first version of the smartphone.

“We began to see China signs of slowing this month, especially in Hong Kong,” acknowledged Tuesday Tim Cook, but said remain “very confident in the long-term potential Chinese market “, where the group holds as his investment plans.

The decline is also confirmed for the iPad, which recorded a drop in sales of over 20%, to 16.1 million units.

Why it matters

Although the brand has other iconic products like the Mac or the iPad tablet computer, iPhone remaining far its first source of income. It still represented more than two thirds of turnover in the quarter ended in December. The evolution of sales of the device is closely monitored by analysts.

The slowdown in the Chinese economy, such as the sales of the iPhone, one of the current major reasons for concern investors vis-à-vis Apple, given by the one and the other are in the group’s results. Over the period from October to December, made in China sales still rose 14% to $ 18.4 billion.

“Major markets including Brazil, Russia, Japan, Canada, Southeast Asia, Australia, Turkey and the euro area are affected by a slowdown in growth economic, lower commodity prices and weakening currencies “against the dollar, listed Tim Cook. This last point has an effect “very important” on the financial results of the group, which carries out two thirds of its revenue outside the United States.

Growth relay

The group’s leaders have tried to divert attention towards services with which Apple is trying to monetize a billion active devices its brand in the world. It was launched in payments (apple pay, which must continue to expand this year to new countries including China) or music (Apple Music, which claims more than 10 million paying users). Sales of services, which include the AppStore and iCloud, rose 26% last quarter.

But activity where growth is strongest is that of “new products”, among which the Apple Watch and Apple TV. The company does not detail sales volume, but the income of the whole rose 62% year on year to 4.3 billion over the last three months.