Are iPhone glorious days are over? – Vanguardia Liberal

Apple investors had already been prepared to experience a sharp decline for a quarter, which would represent the first decline in iPhone sales.

However, we now have to get used to the idea that the severe decline will continue, at least for two quarters. And the more time consuming Apple striving to revive the fortunes of its dominant product, the greater the concern that the glory days of iPhone are over.

The magnitude of depression in the crucial phone business smart Apple was evident on Tuesday when the company reported weaker than expected during the first quarter of this year results and issued a downbeat forecast for the second.

instead of beginning a steady recovery during the current quarter, it appears that unit sales of iPhone could be on their way to an even greater reduction than the first three months, during which fell 16 percent year on year.

the news made the price of Apple shares fell more than 5 percent on Wednesday.

it did not matter that Apple executives insisted that the weakness in the forecast was partly a result of an inventory adjustment equivalent to US $ 2 billion will likely mask the strong demand by consumers. Only US $ 41-43 billion, the forecast Apple’s revenue for the quarter ending in June was enough below Wall Street expectations, which predicted US $ 47 billion-to negatively influence the market, . resulting in a reduction of 8 percent in the price of the shares of the company during operations after the close of markets

the figures emphasized what was already obvious: Apple is living in the shadow of its past success. The increase in sales after the launch of the iPhone 6, which began in September 2014, has left an acute discomfort. And the more time passes, the greater the pressure for Apple to prove they can still cause new enthusiasm for its product line of smart phones when it came time to unveil the iPhone 7 later this year arrives.

according to Apple executives, there is nothing new in the current iPhone product cycle.

according to CEO Tim Cook, the pause is very similar to that experienced two years ago. At that time, Apple had a year-after having had a significant revision of the iPhone- during which less changes occurred. At least, the discount rate by iPhone customers is better than it was back then, and the underlying picture remains healthy, Mr Cook insisted during a conference call with analysts.

Mr. Cook also dismissed indications that Apple was going to be a growth company to a mature company. When asked whether the slowdown meant it was time to reconsider the position of the company in the world of technology, he replied vehemently. “This too shall pass”

But there were enough indications in the past gains as investors feel apprehension.

One of them was the fall in the segment of Apple Greater China, until recently its most dynamic source of growth. Although it represents only 25 percent of total sales, the region was responsible for 60 percent of the revenue decline in the first quarter. According to Mr. Cook, however, mainland China was in a better position than those figures suggested, with a final demand decreased by only 5 percent after an inventory adjustment. The biggest regional decline, he said, was caused by lower sales in Hong Kong, a result, he said, the reduction in purchases by tourists.

The significant decrease in global prices iPhone it has also contributed to the concerns of Wall Street. With customers who prefer cheaper and less recent models instead of the latest flagship phone, the average selling price decreased by an amount of US $ 49 in three months to end at US $ 642.

It is expected prices still experience more pressure during the current quarter after the release of the iPhone, a cheaper device, with a small four-inch screen designed to extend the reach of Apple in the smartphone market.

If iPhone sales have been declining this year, there has been little time to make up the difference. The other Apple hardware products also weak results obtained during the most recent period. The iPad continued its descent, with unit sales falling 19 percent compared with the previous year; and segment revenue from “other products” the company fell by half compared with the previous three months, suggesting a significant decline in sales of Apple Watch.

In apparent confirmation, Mr. Cook said Apple Watch sales appeared to be seasonal, such as the iPod, which produced 40 percent of its annual sales during the last quarter of the year.

Even sales of units Mac computers-which had held firm for a broader drop in demand for personal-computers fell 12 percent.

Apple services segment represented the only positive point. Three months ago, most analysts paid little attention when Apple discussed the potential of its services division. Rather, it was seen as an indication that the company was trying to divert attention from the fall of the iPhone.

Since the iPhone still accounts for two-thirds of total sales, it is likely that the destination phone smart dominate the attention of Wall Street for a long time.