Wednesday, July 27, 2016

Apple seeks to parade their iPhone-reliance – The World

Le Monde | | By

The Apple Store on 5th Avenue in New York  in February 2016.

Tim Cook assured: the worst is over for Apple. “iPhone sales hit their low point” , said its CEO, Tuesday, July 26, on the sidelines of the publication of quarterly results. Between April and June, they were down 15%, causing a further decline in revenues and profits. But the group with apple promises started to improve in the third quarter, which will be marked by the launch, expected in mid-September, the latest version of its flagship smartphone.

the iPhone traditionally accounts for about two-thirds of the activity Apple

iPhone’s performance is crucial for Apple. They traditionally account for about two thirds of its business. In the second quarter, the company has passed 40.4 million units, 7.1 million less than last year. This against-performance follows the decline of 16% during the first three months of the year. This was a first since launching the device in 2007.

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The figure business has, too, fell for the second consecutive quarter. It was $ 43.4 billion (39.8 billion euros), down 15%. Until this year, Apple had been nearly thirteen years of uninterrupted increase in its revenues. The Cupertino company anticipates a smaller decline between July and September, between 4% and 8%. Its net profit fell sharply: – 27% in the second quarter to $ 7.8 billion

saturated Western Market

These figures are less bad. as feared. In the exchange of after-hours trading, the action and climbed over 6%. But this leap only partly compensates the lost 14% since mid-April. After hitting its highest level in May 2015, “valuation has dropped nearly $ 235 billion,” adds Colin Gillis, analyst at BGC. Apple has yet repurchased $ 117 billion of its own shares, strategy supposed to support the price of a security.

Global sales of smartphones, all brands, are expected to fall 7% this year

the decline of the iPhone comes as global sales of smartphones are expected to fall 7% this year, according to Gartner, particularly because of market saturation in Western countries. Apple meets, moreover, difficulties in China, which had hitherto sustained growth. In the second quarter, its revenue has fallen by 33%.

In addition, the company “can not really launch the iPhone in new countries and to new operators” says Carolina Milanesi, of Creative Strategies. If she tries to drill well in India, where it is still very present, high prices are a barrier. “The majority of Android users [operating system developed by Google] who wanted an iPhone migrated with 6″ , adds the analyst. Launched in 2014, it was the first Apple smartphone with a large screen, which was previously one of the main selling points of Samsung and others.

Read also: India opens a little more to foreign companies

smaller Innovations

Meanwhile, rival Apple offer now high-end smartphones for a much lower price, which further complicates the recruitment of new followers. Finally, “The replacement cycle lengthens,” says M me Milanesi. Instead of changing terminal every two years, more and more users retain their old unit for longer, especially because technology innovations are less and less important.

Apple’s rivals are now high-end smartphones for a much lower price

This trend is expected to continue despite the arrival of the next version. Thus, the new iPhone should look like its two predecessors. “The rate of renewal may still slow,” warns Mr. Gillis. The real news would thus be postponed to 2017, for the tenth anniversary of the smartphone. Meanwhile, the company relies mainly on SE iPhone, a device to more aggressive positioning.

Apple is a “victim” of a certain “iPhone addiction.” “Its leaders had much time to build new revenue sources but the only new product category launched in five years, the watch, still looking for his purpose. “ This product, the Apple Watch, is struggling to win. According to estimates of consulting group IDC study (Apple still refuses to disclose any sales figure), only 1.6 million units were sold in the second quarter, 2 million less than last year past. This dive is yet to qualify because of expectations of a new model.

Shift to services

Meanwhile, iPad sales have recorded their tenth consecutive quarter of decline, although the arrival of a version “pro”, sold more expensive, allowed to return to growth of revenue generated by the tablet. And Mac computers also fall, as the overall PC market.

Mac computers also fall, as the overall PC market

historically hardware company, Apple begins to make a turn towards services. With 1 billion of outstanding devices, they are a huge opportunity, assure its leaders. Between April and June, Apple Pay (mobile payment), Apple Music (music streaming), iCloud (online storage) and others have generated nearly $ 6 billion in sales, or 19% more than in 2015 . This shift does not prevent Apple to promise new innovations. “We invest heavily in products that are not yet out,” ensures Mr. Cook. As an electric car

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