iPhone sales slow ahead of 10th anniversary release
Apple reported a drop in sales for the iPhone during the second quarter this week, surprising many people.
It’s been suggested that many customers are delaying their purchase as a result of anticipation over the 10th anniversary edition of the product, which many people expect to be launched soon.
In the quarter ending 1st April, Apple shipped 50.8 million iPhones, which represented a decrease on the 51.2m shipped in the second quarter of last year. The decrease was a surprise for experts, too, who had estimated a sales figure of 52.7m based on available financial data. The previous quarter’s sales figures had been called a ‘return to growth’ by many, but it’s now clear that the increase only lasted the length of the so-called holiday quarter.
At the same time as announcing the loss, however, Apple did report a 4.6% revenue rise (to $52.9bn) but this was again shy of the expert estimate which had been expected to come out at around $53.02bn. As a result, Apple stock dropped by around 1.5% in the hours after the announcement. Earnings per share, however, were higher than expected, reaching $2.10 compared to the estimated figure of $2.02
Clement Thibault, a senior analyst for Investing.com, said: “This is a very mixed report for Apple in terms of results. Apple sold [fewer] iPhones than it did a year ago, but the possibility of consumers holding out until the new iPhone release is very real, especially when the upgrade is rumoured to be more meaningful than in earlier years.”
iPad sales also decreased year-on-year, with 8.9m units being sold. Mac sales increased during the same period, with 4.2 million units being shipped compared to 4 million in 2016. As a result, revenue grew by 14%.
iPhones are usually launched in September, and as a result, the company tends to enjoy a jump in sales during the following holiday quarter, with demand then levelling out again over the next few months.
Excitement over the 10th anniversary iPhone will doubtless continue to build over the next few months, with potential features rumoured to include wireless charging, a curved display and even 3D facial recognition.