All good things must come to an end. And for the folks at Apple, their amazing 9-year streak of increasing iPhone sales has finally been broken. In fact, it was Apple’s first quarterly sales drop in 13 years.
Shipments of the popular mobile devices were down 16% in the last fiscal quarter. That doesn’t mean people aren’t buying iPhones.
The company shipped more than 50 million of them. But it’s a significant drop for a company that’s not used to falling sales. To make matters even worse, Apple expects sales to fall even more in the next three months.
So what’s behind the sales drop? Partly because everyone and his brother has a smartphone these days. Most likely a perfectly good $700 phone that they don’t necessarily need to trade up every single time a new model is introduced.
iPad sales have also taken a hit as more tablet alternatives flood the market. Plus many people find that their smartphone is so functional that they don’t need a tablet or computer. The iPad has seen two straight years of declining sales.
Traditionally, Apple-lovers have gobbled up new releases. Sometimes they’ll even stand in line for days for the latest phone.
But as of late there hasn’t been that much new or different about iPhone releases. The same can be said of Android phones. That means many people are perfectly content to use the model they already have.
It’s not like Apple is losing money. The company earned more than 10 billion dollars for the quarter. Still, investors were not happy with the sales drop and the company’s stock fell 8% after the earnings report was released.
Many are looking towards the 10th anniversary of the iPhone next year with the hope that Apple will offer something new and exciting.
How often do you upgrade your smartphone or tablet? Do you like to have the latest and greatest? Are you content to use what you have as long at it works? Let us know in the comments.