Apple investors brace for first-ever YOY decline in iPhone sales

“Apple Inc. is expected to report its first year-over-year decline in iPhone unit sales when it reports second-quarter earnings after the market close on Tuesday,” Jennifer Booton reports for MarketWatch. “”

“Analysts on average are expecting Apple to report iPhone unit sales of 50 million for its most recent quarter, which would mark a decline from 61 million in the year-earlier period,” Booton reports. “The consensus estimate is calling for iPhone unit sales of 217 million for fiscal 2016, versus 231 million last year.”

“Analysts expect Apple to report earnings per share of $2.00, down from $2.33 in the year-earlier period, according to FactSet… It hasn’t missed on the FactSet consensus estimate since the fourth quarter of 2012,” Booton reports. “Sell-side analysts expect Apple to report revenue of $52.0 billion, according to FactSet, down from $58.0 billion in the same period last year… The company fell slightly short of the FactSet consensus estimate last quarter, but beat expectations in the five straight quarters before that.”

Read more in the full article here.

MacDailyNews Note: On January 26, 2016, Apple provided the following guidance for their fiscal 2016 second quarter:

• revenue between $50 billion and $53 billion
• gross margin between 39 percent and 39.5 percent
• operating expenses between $6 billion and $6.1 billion
• other income/(expense) of $325 million
• tax rate of 25.5 percent

14 Comments

  1. Thank you Tim Cook:

    The expensive and non-upgradeable trashcan Mac Pro

    For the useless one-port Macbook

    Crippled ATV

    The crappy Apple Watch

    Ignoring the Mac lineup

    Buggy updates

    Not innovating the iPad into stagnation

    Minor cosmetic changes to the iPhone after 5-years and milking it too into stagnation

    Exec mismanagement

    Promoting your gay agenda to the world while using Apple as your platform

    Thanks for nothing!

    1. Wow, hope you feel better now.

      I think it is time for you to switch to a brighter world with Samdung and microshaft.

      Go go go, go get the bits and pieces from all over the tech space.

      AND PLEASE, don’t come back here! Ever!

      1. @small-peterblood71

        If the word “gay” is a homophobic reference, then why is it used in the title of the LGBT organization?

        The following statement (“Tim Cook uses his position at Apple to promote gay rights”) is called a fact! And does not denote any connotation of bigotry.

        It appears the bias is all yours… The truth hurts, don’t it.

        1. The fact you brought up a gay aka homophobic reference as being in any way shape or form relevant speaks volumes about you. Should you be chastised for “promoting your straight agenda to the world”? It’s irrelevant and no way are Tim’s liberal belief’s and “agenda” anything other than personal ones, not Apple’s. Because he is CEO and has money of course gives his personal views more weight and press but they are not being channeled through Apple PR.

          Nice but clumsy, goofy & ridiculous try trying to transfer your clear hateful biases to me but it’s obvious you’re anti-gay. In a most hideous type of fashion. The truth hurts indeed, especially those like yourself in denial when the evidence is as clear as the tweaked nose on your embarassed face.

          1. Please read the job description for Apple’s CEO. You will not find being a gay rights activist part of his duties; neither will you find branding Apple to the world as a gay company… Albeit that’s exactly what Cook does and has done for the last 5-years.

            I couldn’t care less what he does behind closed doors, but he tells us all with every opportunity he gets. The only thing that matters is his job performance, and he’s lazy, non-creative, and utterly incompetent!

            1. Wow, you’re spectacularly clueless. So what you’re saying is no one can be an activist if they have a paying job, that people can’t do or support what they believe in and have a job too? Does your own job description (assuming you have one) preclude outside activities and stomp on your right to do so? Last time I checked we’re living in America and it’s fine to express yourself as you see fit. In your case though we see this is not always desirable.

              Tim Cook never brings up whatever activist activities he may enter into at Apple events. There is a clear dividing line as there are with most people with their jobs and private lives. So you’re tilting at windmills here. Amusingly so.

              Only you see Apple branded as anything more than what it’s supposed to represent as a superior and trusted brand. And Apple devices may be sexy but the company is decidedly non-sexual. Your take is a giant “Say wha’!?” and most people do not associate Tim Cook’s sexual preferences and outside causes with Apple as a company. Again it’s because you’re riddled with anti-gay sentiment and hateful bias. (Or haven’t come out yet.) You have a real hang-up that’s crying out for further psychiatric help.

              Every opportunity? Hardly. He is very quiet about his personal life, and you know that. Lazy, non-creative, and utterly incompetent I think best exemplify your own qualities both as a writer and misguided goofball.

  2. A decline would obviously not be a good thing, but I can almost guarantee that there will be no context provided if it does go down i.e. did the previous year’s figure represent a massive increase on two years ago, are these years figures now more in line with what figures might have been expected without last year? Huge increases barely increase the stock price, but drops back to the norm are deemed to be signs of doom and gloom. Despite all the time they supposedly spend analysing things, all these people are ridiculously binary in their thinking.

  3. A 40% gross margin on $50B will translate to net profit of ~ $11B. That is much higher than any other company particularly M$ and gaggle.
    It will be interesting how the market reacts. We probably can easily guess. Still this may be a good opportunity to buy in at a discounted price.
    We should also hear about the stock dividends pricing. Hopefully that will increase substantially but I would not be surprised if Apple only increases it by 10%.

    1. This year is definitely not like previous years when at least the amateur analysts had something positive to say. It’s totally quiet this year. I’m sure there is a general consensus Apple is headed for the garbage heap. The more Apple seems to try to do, the worse the street attacks the company. The dividends and buybacks are doing nothing positive for the share price and they’re not even attracting institutional investors. I think Apple is doing the right things as a company, but the results always seem to burn the shareholders in terms of share gains. No layoffs and no store closings but everyone is sure Apple is done for.

  4. I’d like to do my part. Please get the iPhone SE into inventory so I can got to the Apple store and pick a couple up. Looking for Space Grey 64GB models.

    These are in the sweet spot for me in terms of size and features. Looking forward to upgrading my 5s phones.

  5. As excepted and forecast by Tim Cook himself at the last earnings conference.

    Global slowdown is NOT unique to Apple…dummies. If Apple never sold another phone it would still be the world’s most valuable and prosperous company that leads where other only wish they could.

  6. What is interesting this week, is how negative are the news on this fact. Like if Apple is responsable for the entire slowdown of the phone market.

    Apple announce it earlier but those brainless anal-yst are at it again with the same doomed style article from 2015.

    Boy! Why so many negative toward Apple and lack vision. Those short terms anals must be good in bed or have no freaking life to look up to.

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