Apple’s Revenue Declines for the First Time in 13 Years

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Don’t say they didn’t warn you. Apple posted a year-over-year decline in revenue today, the first time the company’s failed to grow its business in 13 years. It brought in $50.6 billion in revenue for the second quarter of 2016, and $10.5 billion in profits. That compares with $58 billion in revenue and $13.6 billion in profits during this period last year, a drop of 13 percent for the revenue.

Apple isn’t doing badly, it is still one of the most valuable and profitable companies in the world. But it hasn’t found a new blockbuster product to pick up the slack as iPhone sales have slowed in many parts of the globe.

The iPad seemed like a promising new device at first, but sales peaked in 2014, and have been in decline ever since. The Apple Watch was the last major category of new hardware the company introduced. It quickly became a billion dollar business, but so far hasn’t shown the kind of mainstream appeal that made the iPod, MacBook, and iPhone such massive sellers. The details of watch sales are still lumped in with “Other Products”, and that was the worst performing piece of Apple’s business this quarter.

Apple’s revenue declined around the globe, including in China, which had been the major engine of growth for the company over the last year and a half.

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SOURCE: The Verge, Ben Popper