Apple announced their first drop in sales since 2003 and revenue fell 13%. Why does this happen and who will be the tech visionary in Silicon Valley to replace Steve Jobs?
Along with confirming a widely predicted decline in iPhones sales during the first three months of the year, Apple on Tuesday reported its first drop in quarterly revenue on an annual basis since 2003. But the whole point of quarterly earnings is to glean information we didn’t already know. So here are a few pieces of new information that are worth pondering as investors try to decide whether the most valuable U.S. public company is headed for a torturous decline or about to emerge triumphant again. CEO Tim Cook didn’t sound worried on the company’s call with analysts. “The future of Apple is very bright,” he said while alluding to exciting but unspecified new products.
In recent years, most of Apple’s sales growth has come from China, but that engine too has greatly slowed. Apple said its China sales shrunk by more than a quarter to $12.5 billion. The rate of growth had already slipped to 14% last quarter’s from jumps of 99%, 112%, and 71% in the three prior quarter. Further, the challenges are increasing after China forced Apple to shut downits iBooks store and iTunes movie service last week after just six months in operation, reducing the appeal of the iOS ecosystem there.
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