Apple’s first poor results in ages expected

poison-appleApple is expected to report its first bad results in ages later today and the Tame Apple Press is trying to put its best spin on it.

Apple’s favourite news agency Reuters is talking about iPhone sales rising a whole percent but even it admits that it is far from the double-digit growth investors have come to expect.

The fact that there is any growth at all is a plus as we would have through that growth would have fallen by a lot more than that. The iPhone 6S and 6S Plus which according to Reuters “experienced record sales when they were launched” are now facing  weak demand.  What they are not saying is that the only reason they saw record sales in the first place was that they launched in China at the same time as the US rather than delaying the China launch until this quarter.

However analysts say that the iPhone 6s is basically the same as the other iPhones and gave few reasons to upgrade.

 

China, the company’s fastest-growing market, may also have weighed on first-quarter results, as a slowdown in the country’s economy forced consumers to tighten their purse strings.

Reuters thinks Apple sold 75.5 million iPhones in the October-December quarter, a 1.3 percent increase from a year earlier. This compares with a nearly 46 percent year-over-year jump in iPhone sales in the first quarter of 2015. The slowest growth in quarterly iPhone sales so far has been 6.8 percent, in the second quarter of fiscal 2013, according to data from Statista.

Apple is expected to forecast a drop in iPhone sales for the March quarter – the first time that sales will fall since the iPhone was launched in 2007.

This was foreshadowed by disappointing March-quarter forecasts from the company’s Asian suppliers .

Apple is expected to sell 54.6 million iPhones in the March 2016 quarter, according to FactSet. The company sold 61.2 million iPhones between January and March, 2015 – a 40 percent year-over-year increase.

Reuters is hoping that iPhone 7, expected later this year, will pull Apple’s nadgers out of the fire.

Apple shares are continuing to fall. They have fallen nearly 10 percent since the start of October.