AS IT IS 2016-04-28 iPhone Sales Fall, Ending Apple's Record Growth

AS IT IS 2016-04-28 iPhone Sales Fall, Ending Apple's Record Growth

How long have you had your Apple iPhone or computer? If you have not replaced that product in the last two or three years, you may be part of the reason for Apple’s falling sales numbers.

Apple is the world’s most valuable company. Its yearly growth trend started in the early 2000s, with exciting new computers and a portable¹ music player known as the iPod.

The company continued to grow, with the introduction of the iPhone smartphone. Then, it introduced the iPad tablet. 

Sales of Apple products grew every year for 51 straight quarters. That all changed on Tuesday, when the company reported a drop in sales. Sales for the first quarter of 2016 dropped 13 percent.

Sales dropped to $50.6 billion from $58 billion during the same quarter in 2015.

The news caused Apple’s stock to drop, too. The company’s shares were down by about 8 percent in after-hours trading.

Slow growth in China

Some experts say the struggling Chinese economy may be to blame for Apple’s weaker sales. The company’s report shows sales were down in China, Taiwan and Hong Kong by a combined 26 percent. In the past, Apple was able to depend on sales growth in those markets.

Apple’s Chief Executive², Tim Cook, says the smartphone market is not growing because of the slowing economies in some countries.

But other experts say Apple is no longer regularly producing exciting products. People who bought new Apple laptops or smartphones in the last two or three years do not feel like they need to buy the latest products.

Rob Pegoraro is a technology writer for USA Today and Yahoo. He says he still likes to use the Apple products he owns but, there is nothing “revolutionary” right now.

“You got a lot of people upgrading³ to the iPhone 6 and the iPhone 6 plus. The 6s and the 6s Plus, they’re better, but as the names would suggest, they’re not exactly revolutionary. Normal people don’t buy new phones every year. “

Apple still makes a lot of money

Pegoraro also says that Apple did not really have a bad quarter. The company still makes a lot of money from the products it sells. It is just not growing anymore.

“Their gross⁴ margin⁵ was 39.4 percent compared to 40.8 percent. I struggle to think of how many other industries or companies could pull down those kind of profit margins⁶ for over a decade straight.”

Pegoraro says there is not much more room for improvement in the products Apple makes. For example, the company could create an iPhone with a battery that lasts five days. “That would be amazing, but you’re running into the laws of physics there,” Pegoraro says.

The Associated Press news agency reports that there are still parts of Apple’s business that are growing. For example, there are 500 million iPhones in use. Those phones need cloud storage, apps and music. That part of the company is worth $6 billion per quarter now, and that is an increase of 20 percent over the same period last year.

There are also concerns that the Apple Watch, which came out a year ago, did not have better sales. But the watch actually sold more than twice as many units in its first year compared to the first iPhone in 2007.

Right now people can only guess what is next for Apple. Some think the company will make an electric car. It is building a new headquarters that has been described as a spaceship or flying saucer by some observers.

Pegoraro warns to not underestimate⁷ Apple just because of this small drop in sales.

“This company, their problem is they made a lot of money, just not more money than they made the last quarter. You know, if that’s failure, then I should only hope to be just as much of a disaster!”

Words in This Story

units – n. an individual item of one of the products that a company makes and sells

margin – n. an extra amount of something (such as time or space) that can be used if it is needed

decade – n. a period of 10 years

revolutionary – adj. causing or relating to a great or complete change

content – adj. pleased and satisfied : not needing more

regularly – adv. on a consistent basis, very often

1 portable   

adj.轻便的，手提式的；n.便携的东西

参考例句：

• I have a portable typewriter.我有一个便携式打字机。
• There is a pretty portable pair of steps in one corner of the room.屋角放着一架小巧玲珑的折梯。

2 executive   

adj.执行的，行政的；n.执行者，行政官，经理

参考例句：

• A good executive usually gets on well with people.一个好的高级管理人员通常与人们相处得很好。
• He is a man of great executive ability.他是个具有极高管理能力的人。

3 upgrading   

浓缩

参考例句：

• Many people are upgrading their mobiles to top-end models. 很多人不断将手机升级到最高档的款式。
• We will press ahead with our plans for upgrading the software. 我们会继续为我们的计划努力，加快进行软件升级。

4 gross   

adj.全部的，粗俗的，肥胖的；vt.获得...总收入

参考例句：

• The gross weight of the box of chocolates is 500 grams.那盒巧克力的全部重量是500克。
• I consider this a gross oversight on your part.我把这件事看作是你的一大疏忽。

5 margin   

n.页边空白；差额；余地，余裕；边，边缘

参考例句：

• We allowed a margin of 20 minutes in catching the train.我们有20分钟的余地赶火车。
• The village is situated at the margin of a forest.村子位于森林的边缘。

6 margins   

边( margin的名词复数 )； 利润； 页边空白； 差数

参考例句：

• They have always had to make do with relatively small profit margins. 他们不得不经常设法应付较少的利润额。
• To create more space between the navigation items, add left and right margins to the links. 在每个项目间留更多的空隙，加左或者右的margins来定义链接。

7 underestimate   

vt.对...估价过低，低估

参考例句：

• Don't underestimate the role of theory.不要轻视理论的作用。
• I think a lot of people still underestimate him.我觉得很多人仍然低估了他。