Apple for the first time in 15 years recorded a decrease in annual revenue. This is evidenced by published on Tuesday its earnings for the fourth finkvartal. Reduction of annual and quarterly revenue Apple is largely associated with falling iPhone sales in China amid increasing competition from local producers, according to experts interviewed by Bloomberg. However, Apple is confident that the smartphone market is fraught with the potential for sustainable development.
The attempts of analysts to figure out how Apple is ready to use the failure of a competitor to the Samsung Galaxy Note 7, special had no success. In Cupertino admitted that offer the iPhone 7 and iPhone 7 Plus is now limited, and the Apple at all desire can dramatically increase production. The management is confident that the company can continue to increase revenues from sales of smartphones.
According to Tim cook, the users are very happy with the camera’s capabilities the iPhone 7 and iPhone 7 Plus. Apple’s CEO believes that smartphones of the brand possess a fair margin, and the company is not ready to take over them too much. Expectations increase in the average selling price of the Apple is proportional to the number of new features that the company introduces new models of smartphones.
Apple noted that the iPhone 7 are in high demand, but the production capacity Apple doesn’t allow us to meet this demand. “Taking into account the fact that the iPhone 7 and iPhone 7 Plus particularly coming on the market in insufficient quantity, Apple can not take full advantage of the high demand for its products,” said Jackdaw Research analyst Jan Dawson.
In the U.S. market this year, there is high activity of sellers, encouraging iPhone owners of previous generations to move to the latest model. As observers note, such increased activity is celebrated every two years. Tim cook with this observation agreed, though he was not categorical in its solidarity with the author of the question.
Provocative question of the disparity of the costs of development and returns in the form of moderate growth in sales is not caught by surprise, Tim cook. Over the past three years, Apple has increased the budget for research is more than two times, and sales have increased slightly. Tim cook calmly explained that the company is now developing new products that are far from the phase of serial production.
In addition, large costs are spent for the development of software ecosystems and services. In the third quarter revenue from services increased by 24% compared to the same period of the previous year.