- Apple sees first sales dip in more than a decade as super-growth era falters: Revenue increased 1.7 percent to $75.87 billion. Apple forecast its first revenue drop in 13 years and reported the slowest-ever increase in iPhone shipments as the critical Chinese market showed signs of weakening, suggesting the technology company's period of exponential growth may be ending.Apple's guidance for the March quarter implies iPhone sales of 50 million to 52 million units in the March quarter, which would mark the company's first-ever decline in sales of the gadget In the same quarter last year Apple sold 61.2 million iPhones. The company reported revenue of $18.37 billion from Greater China, accounting for 24.2 percent of total revenue. Revenue from the region had nearly doubled in the fourth quarter. Apple forecast second-quarter revenue of $50 billion to $53 billion, below analysts' average forecast of $55.5 billion. In the same quarter last year Apple reported revenue of $58 billion. While revenue in Greater China rose 14 percent in the last quarter, Apple is beginning to see a shift in the economy, particularly in Hong Kong, Apple Chief Financial Officer Luca Maestri told Reuters in an interview. "As we move into the March quarter it's becoming more apparent that there are some signs of economic softness," Maestri said. "We are starting to see something that we have not seen before." The slowdown comes as Wall Street analysts worry the company does not have another blockbuster product to replace the iPhone. Apple does not report Watch sales, but it does not appear to have the makings of being a hit on the same level as the iPhone a year after launch. And while the company is reportedly working on a car, what it plans to do in that area and when are still unclear. The company's shares, which have fallen 5 percent this year, bounced around in after-hours trading and were down more than 2.6 percent.
- China May No Longer Be Apple’s Great Firewall: The iPhone maker is feeling the effects of an economic slowdown in its most important market. China has been one of Apple's most reliable strongholds during its historic stretch of technology dominance. Even when sales began to level out in the U.S., Europe, and Japan, China was a buffer, promising a massive market of newly middle-class customers looking for a high-end, brand-name smartphone. Sales in Greater China grew 84 percent to $58.7 billion in 2015, making it the company's second-biggest market after the U.S. Apple Chief Executive Officer Tim Cook showered the region with praise at the time for its importance to the company's future. Apple's reliance on the country is now being put to the test. On a conference call with analysts after its Tuesday earnings report, Cook said the company is beginning to see "economic softness" in the region, particularly in Hong Kong. China is no longer able to offset sluggishness elsewhere or counter the broader slowdown in the global smartphone market. Even with the Chinese New Year shopping season approaching, Apple is projecting its first quarterly sales decline since 2003.
- Apple’s iPhone Grows Finally Flatlines: 0.4% Yearly With 75 Million Units Sold In Q1: Apple today reported sales of 74.8 million iPhones, 16.1 million iPads, and 5.3 million Macs in its Q1 earnings report today. Apple’s first quarter includes holiday sales, as the three-month period ends December 31, 2015. As such, it was supposed to be one of Cupertino’s best qrters of the year. Plus, the iPhone 6s and iPhone 6s Plus both went live on September 25, meaning that Apple’s next-gen flagship devices were available for the whole of this quarter. Last year at the same time, Apple sold nearly 75 million units of the iPhone, which represented 57 percent revenue growth from the year before. This quarter’s sales of 74.8 million iPhones puts yearly revenue growth at just one percent for the category, and device sale growth at 0.4 percent. In terms of quarterly growth, Apple sold 56 percent more iPhones from last quarter’s 48 million. Apple was expected to sell at least 75 million units of the iPhone this year, a forecast that analysts have had a very close eye on during the course of the quarter. Many fear that the iPhone may finally start declining after nearly eight solid years of growth. On the other side of the spectrum, Apple is having more difficulty cultivating the iPad line of products. The company sold 16.1 million iPads in the first quarter, down 25 percent year-over-year, but up 63 percent from last quarter. Meanwhile, the PC industry as a whole has been steadily slowing, and Apple is no exception. Apple sold 5.3 million units of the Mac, down four percent from last year.
- Apple TV And Apple Watch (Probably) Had A Big Quarter: Apple’s “other” category makes it difficult to assess how many Apple Watches and TVs were purchased. What we do know is that the $4.35 billion in the “other” category saw a big jump — not just 62 percent annually, but up 43 percent since the last quarter. This means that there was a spike in sales months after the initial Apple Watch release in April. This could be because of increased holiday sales or a popular fourth generation Apple TV. Beats headphones and iPods are also included in “other.” Without giving specific sales numbers, CEO Tim Cook said on the earnings call that it was the “best quarter by far for Apple TV sales.” There are 3,600 apps available for the TV now, he said. Cook added that the company “set a new quarterly record for Apple Watch sales…especially strong sales in the month of December.” Apple has never released specific Watch sales numbers. Asymco analyst Horace Dediu updated his Apple Watch projections "My estimate on Watch sales is about 5.5 million units during Q4. 12.4 million to date"
- Software maker VMware to cut 800 jobs, sees weak 2016: VMware Inc forecast 2016 revenue and profit below analysts' expectations, suggesting the software maker's strong growth in new businesses was not enough to compensate for weakness in its traditional server-virtualization software. VMWare, like many technology providers, is struggling to keep pace with its customers' efforts to move key computing infrastructure to the cloud, meaning remote data centers. VMware shares fell 5 percent in extended trading on Tuesday, while EMC shares declined 1.4 percent. The company, whose flagship product helps customers cut costs by running multiple operating systems on a single server, has been hurt by slowing economic growth in markets outside the United States, which account for nearly half of its revenue. In particular, it cited weak bookings for its software in China, Russia, and Brazil. But the company noted some bright spots in newer businesses, such as NSX, which makes networking more efficient. That business is on track to generate $600 million annually, VMWare said, up from $200 million a year ago. The company's net income rose 14.4 percent to $373 million, or 88 cents per share, in the quarter ended Dec. 31, helped by a 12.6 percent jump in its services revenue. Revenue increased 9.7 percent to $1.87 billion, topping the average analyst estimate of $1.85 billion.
