Apple Q4 earnings, due October 25th, expected to reveal first annual revenue decline since 2001

“As corporate winning streaks go, Apple has been on a pretty good one: 14 straight years of revenue growth,” Chris O’Brien reports for VentureBeat.

“The company will likely confirm that this streak has come to an end when it reports fourth-quarter earnings tomorrow. For the fiscal year 2016, ending Sept. 30, analysts’ estimates anticipate that Apple will disclose $215.67 billion in annual revenue,” O’Brien reports. “That would be down from the $233.72 billion it reported for fiscal year 2015.”

“It’s incredible to think one has to go all the way back to 2001 to find any decline, when the company reported $5.36 billion in revenue, down from the $7.98 billion revenue it reported in 2000,” O’Brien reports. “That’s also a reminder of just how puny Apple was at that point: The drop in annual revenue for 2016 could be about three times Apple’s total revenue in 2001.”

Read more in the full article here.

MacDailyNews Take: iPhone is a major portion of Apple’s revenue. The extra revenue fueled by Apple’s delivery of properly-sized iPhones with iPhone 6 caused a spike in revenue that was tough to beat with the iPhone 6s, even if it were not handicapped with Apple’s stupid “S” naming scheme. The outperformance of iPhone 6 was an anomaly. Apple will return to YOY revenue growth in fiscal 2017 which has already begun as of late September.

20 Comments

  1. Newer Macs introduced sooner may have helped this but going forward Apple has solid growth prospects with iPhone 7 & the future 8 10th anniversary iPhone. Along with services, other products & new Macs of course. But I expect doom ‘n gloom from the anal-cysts (and the anti-Cook crowd) until quickly proven wrong, again.

  2. With the iPhone 7 demand off the charts and Samsung’s phones exploding, I don’t really care to worry about the past and am not sure this metric and narrative framing will move the markets.

    1. If you feel that way, then short AAPL and cash in. You can laugh all of the way to the bank. Or, you can leave that Birdseed revenue on the table.

      By the way, if you are wrong (and the incessantly pessimistic are often wrong), then what happens? Will you admit your error and apologize when you are wrong as stridently as you scream “I told you so” when you happen to be right? I sincerely doubt it, which is why you are not taken seriously. You have no accountability. You might as well be an analyst…

      1. I’m a long time AAPL shareholder and have been crushed by the shorts many times. I can’t short Apple because it’s a company I love and one I TRY to believe in. Tim Cook makes that nearly an impossible task, because of his total incompetency. I get tempted to sell everytime we get to this point but still manage to hang on.

        I could be making a lot more money if I moved on from AAPL, that’s for sure.

        1. “I could be making a lot more money if I moved on from AAPL, that’s for sure.”

          OK, so you’re staying put. Good for you. NOW . . . oh great prognosticator, what equities should you move to, “for sure.” We’re all ears!

            1. Riiiiiiiight……

              Anyone can go look up some stocks that are trading up today and say they “made a killing”. I think he was asking you to predict something a bit more difficult than WHAT ALREADY HAPPENED today 😂

            2. I think he was trying to call your ‘bluff’ of making more money if you had moved on from AAPL. As ‘proof’ of your confidence it seemed to me that he was asking you to choose a stock you felt confident moving your AAPL invested funds to today and make ‘more’ money.

        1. Given what you have been saying up and down the page, it’s quite evident you are the drooling moron. I was on the trading side making markets as a specialist for 15 years and switched to the investment side 7 years ago and I can readily testify you are full of shit and your comments indicate you know anything other then how to spew semi-articulate bullshit.

  3. Once again, the naysayers anal-ysts are at it again like if it was a big news.

    Predictions that Tim&cie mentionned at the beginnning of the year btw.

    Anyway, that WS of ours is rigged…

  4. I still say APPLE should be offering up something like a mini-super computer.

    I know the current Mac Pro makes that claim, and indeed it does kick-butt. Nonetheless, I think they should come up a box allowing the user to slide in nano-blades using the A10 chip, to start with.

    They can keep offering the trash can option as their main PRO device while creating something they could use to soothe buyers like myself who want something other than the trash can option.

    This strategy also allows them to explore things they just can’t using the current Intel chip solution. And further, it prepares the market for a day when maybe a big chunk of the Apple offerings aren’t running Intel.

    Does a cluster configuration based on anywhere from 10 to 100 (user configures) A10 chips make any sense? Could it match the performance of the trash can? What about total cost? Power consumption? Cooling? Numerical processing capabilities? Compatibility issues with existing software?

    No doubt they have considered all these issues and a 1,000 more. Still, it would be nice to learn what their roadmap is for the Mac Pro, assuming the map doesn’t contain an EOL symbol somewhere around the exit at Shamrock, TX.

  5. Here’s the problem with AAPL (and my family’s 40K portfolio thereof):

    Thanks to its stellar past, Apple can’t release just any new product from now on–it has to release BLOCKBUSTER devices each and every time. For instance: The Apple Watch is #1 in its market niche, BUT it’s not yet a mind-blowing, supernova, industry-disrupting must-have device. SO, to the financial markets and techno-pundits, it’s clearly a grand failure from the geniuses at MegaApple.

    Simply put, being one of the world’s most successful and innovative companies is both good and bad news for Apple investors and customers. For a great many, and from now on, no Apple product will EVER be good or good enough. Sad to say, but at the very heart of human nature.

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