Apple Down,Down Down, As Lack Of Innovation Hits Sales
Apple has seen sales in China fall 30%, net income was down 19%, while revenues fell 9%.
Sales of iPhones are down by 2.5M units while MacBook sales have slumped 17%.
Despite this poor economic news, Apple still remains the most profitable U.S. company, with net income of $45.7 billion for the fiscal year it just ended.
The big problem for Apple is they have nothing in the product pipeline to turn their fall in profits around.
The Company said that net income fell 19% to $9 billion, from $11.1 billion, in the same period a year earlier.
The tech giant sold 45.51 million iPhones in the three months to 24 September, beating an average estimate of 44.8 million.
The company has forecast higher-than-expected holiday season revenue of between $76bn and $78bn.
Revenue in the fourth quarter fell 9% to $46.85bn.
That meant annual revenue fell for the first time since 2001, highlighting a slowdown in the smartphone market as well as intensifying competition, particularly from Chinese rivals.
Revenue from Greater China, once seen as Apple’s next growth hope, fell 30% in the quarter, after dropping 33% in the previous quarter.
In the same period last year, revenue from Greater China doubled.
Apple’s shares were down 3% at about $114.80 in after-hours trading.
“Apple didn’t have a great [fourth quarter] as iPhones, Macs, China, the US and what appears to be Watch were down,” said Patrick Moorhead, an analyst at Moor Insights & Strategy.
Chief Financial Officer Luca Maestri said it was “impossible to know” if there was any effect yet from rival Samsung halting production of Galaxy Note 7 phones earlier this month.