The silver lining in Apple’s across-the-board miss

“Apple’s earnings for its fiscal second quarter (which I will refer to from here out as Q1 2016, as is my custom) were rocky,” Jan Dawson writes for Beyond Devices. “As Tim Cook said, it was a challenging quarter. There was bad news not just in iPhone, where Apple had already suggested there would be, but in other areas too.”

“It’s worth enumerating exactly what those sources of bad news are to understand what’s going on at Apple,” Dawson writes. “But there was also some good news in the earnings, which is particularly important when looking at the longer term.”

“What was notable about this down quarter in iPhone sales was that Tim Cook said the last six months were the highest ever for Android switching. That implies that what fell short during that period was upgrades. That, in turn, suggests that when this base of iPhone 6 buyers finally does upgrade in large numbers – likely between 2-3 years from their purchase – we could see another big bump in sales, an aftershock of sorts,” Dawson writes. “The biggest impact would hit in a roughly eighteen month period from this September through the following March, which provides more reason for optimism about longer term iPhone growth.”

Much more in the full article – recommendedhere.

MacDailyNews Take: The importance of iPhone 7 cannot be overstated.

Mossberg: Apple’s iPhone 7 had better be spectacular – March 23, 2016


  1. “The importance of iPhone 7 cannot be overstated.”

    Given that most rumors, at this point, point towards the iPhone 8 being the biggest upgrade / redesign, I would actually say the importance of iPhone 8 can’t be overstated.

  2. I will bet Apple releases at least one brand new device in the next 12 months.

    I will make a suggestion by noting that a watch is not necessarily the best device to deliver announcements, nor is it the smallest. I hate wearing a watch.

      1. I think I’m going to stop calling it a watch. I never watch it. I think I’ll start calling it the Informer. It lets me know when new messages have been sent, it reminds me when I need to get off my butt and it informs me how successful I’m being at accomplishing my short term goals. The name Watch just doesn’t do it justice. And I really like being Informed.

  3. Macs may only be 10% of revenue but growth there would help. How about fixing iCloud and making it the BEST Cloud service out there. How about we stop slow rolling Mac upgrades. Apple knows exactly what processors Intel is releasing way before anyone else and should have a new Mac as soon as the new processors arrive well before their competition not months after it. It’s pathetic that we didn’t get a Macbook with Thunderbolt 3, (especially if it only has 1 Port anyway) that we don’t have a new Cinema Display, that we don’t have new Mac minis, no new Macbook Pros, and OMG its been 800+ days since there was a Mac Pro. If they had some focus and released new Macs last Quarter when they should have there would be more good news to off set a drop in iPhone sales. Lately Apple looks like the Cleveland Browns…relying on 1 great player (the iPhone) to win the game. Gotta start playing like the Warriors – a TEAM with everyone contributing all they can Mac, Services, iPad, AND iPhone!

    1. The lack of product upgrades does make you wonder what the engineering teams for the non-iOS products are doing with their time. Maybe they have moved them to designing doorknobs or air conditioning controls for the new building.

      1. A book about Apple before Steve’s return said beware of a company getting a new office. The employees are more worried about where their new cubicle will be than their job. This happened to my husband’s company last year, especially that they were getting smaller and uglier desks. Now it’s back to the normal bitching, like they froze our pay when their making good profits. When Apple moved into the office they have now productivity went down. Same thing.

    1. I run a 98″ 4K LG TV with a MacBook. I have a little rollable stand for the wireless keyboard and trackpad.

      The larger screens the less sense iMacs since they require replacing a screen in order to upgrade the Mac performance. That is wasteful.

      of screens and money. Better for Apple to start shipping current and larger sized Retina Cinema displays.

  4. Across the board miss?
    20% YOY growth in services, 30% YOY growth in others?
    Analysts have been complaining for years that Apple is too dependent on the iPhone. Yet all they can do is focus on the decline in iPhone sales from last years massive pent up demand for the iPhone 6 & 6+. They just totally ignore the other growth areas.
    If you take out 2015 Q2 results and compare to Q2 2014
    Apple sold 43.7 million iPhones.

    One of the TV networks in NZ where I live, reported Apple results as the worst in 10 years. I couldn’t believe such bias.

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