Did the financial year 2016 change Apple's shape?

Last week, Apple announced the results of the last fiscal quarter in 2016, whose numbers shocked investors, albeit in line with expectations, as Apple achieved for the first time a decline in 15 years. See an article on the margin last Thursday For more-. In every financial quarter, we are used to not contenting ourselves with the usual narrative, but we analyze, compare and compile the numbers. And there were several surprises in front of us.

IPhone and worse performance

Apple has achieved a remarkable decline in sales of the iPhone, as it sold 211 million devices compared to 231 million, meaning a decline of nearly 20 million, which affected the company in general, as iPhone revenues fell to 136.7 billion compared to 155 billion, meaning it lost more than $ 18 billion, and this means failure IPhone 6s, 6s Plus, and even iPhone SE, achieving sales of 6 and 6 Plus. Thus, it would be a catastrophic failure from Apple that 3 new phones could not defeat two phones. When calculating the average, we find that Apple's revenue was $ 670 for the iPhone and became $ 645. This decline is not significant, which means that the popularity of the iPhone SE was not huge.

IPad and traditional breakdown

We know you have been bored with news of the iPad collapsing for the third year in a row. In fact, tablet sales in general are collapsing due to the increase in phone sizes. In short, Apple sold 45.6 million iPads compared to 54.8 million the previous year, although this year witnessed the launch of 3 iPads compared to 2 in the previous year - just like the iPhone - and revenues were 20.6 billion compared to 23.2 billion. By calculating the average, we find that the revenue of the iPad is $ 423 and increased in 2016 to $ 452, despite the presence of the iPad Pro 12.9 with a high price (double the mini), which means that it also did not achieve great popularity.

And the Mac joins the undoing; But it differs

This year saw a decline in MacBook sales. Where the company sold 18.4 million devices compared to 20.5 million in 2015. Revenue decreased from 25.4 billion to 22.8 billion. By calculating the average, you find that it was $ 1235 and became $ 1237, meaning no difference at all. Do you know what the secret is ?! The secret is that Apple did not introduce any new devices during the 2016 fiscal year. This means that the decline is not due to a decrease in popularity, but to the lack of new provision. The MacBook Pro has not received an update since 2013, and the Mac Mini has not received any update since 2014, and the Mac Air with all its versions did not happen from the beginning of 2015, a year and a half, while the Mac Pro did not see updates throughout the 2016 fiscal year (it was updated last Thursday). That is, Apple was selling devices from 2013-2014-2015 in 2016 and surprisingly, the decline was only 11%. Wonderful Mac

Awakening services

In a big surprise, and contrary to Apple's general line, the services sector, which includes Internet services, Apple Care, Apple Pay, licenses, the cloud and others, achieved a jump in revenues. In 2015 it achieved 19.9 billion dollars and the number increased to 24.3 billion dollars, an increase of 22.2%, and because Apple did not offer anything new in it, but It only published Apple Pay, and this indicates that it may be the secret of this rise. Last quarter the sector achieved its highest result in the entire history of Apple. The advantage and importance of this sector is that it is not affected by the launch of new products such as devices. That is, there are no high and low seasons throughout the year. There are purchases, support services, and so on. It is important to find that the revenue from services exceeds Apple's revenue from all Macs and iPads as well. Thus, it occupies the second largest source of income for Apple after the iPhone. Look at the image above, especially the yellow part, and grow it over time.

Europe and Japan are the big surprise

Apple’s sales decline almost everywhere. In America, the "continent", it was 94.8 billion, to 86.6 billion, down 8%. In China, the tragedy was a decline in revenues from 58.7 billion to 48.5 billion, a decline of 17.5%. In Asian and Australian stores, it decreased from 15.1 billion to 13.6, a decrease of 10%. The situation is different in Europe, however, where sales have almost no decline. Apple achieved sales of 49.9 billion compared to 50.3 billion, a decrease of $ 367 million, which means less than 1%. But what was surprising was in Japan, where sales increased. Yes, this is true. Sales increased from 15.7 billion to 16.9 billion, an increase of 7.7%. Apple fell everywhere and stabilized in Europe but rose in Japan? !! Does he explain to you why Apple launched more Apple Pay services in Japan, specifically paying transportation with the service last Thursday ?!

Is Apple different?

1

The iPhone’s share of Apple’s total revenue decreased to 63%, compared to 66% in the past. Is it the beginning of the power of the iPhone?

2

Services outperformed all sectors' revenues and became the second largest source of income for the company with a 4.7% share. This sector is characterized by being stable, so will Apple start focusing on it?

3

The iPad fell from the second largest source of income for Apple in 2014 to become the third in 2015 and now it continues to decline to become the fourth in 2016. Will Apple be able to revive it again?

4

Apple has taken great interest in China and even launched exclusive benefits for them. Will the continuous decline push it to reconsider the Chinese market?

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