Some desperate press even suggested that the fall of the iPhone was not “real” because sales of the iPhone 6 were so high it just made the slide look worse. Others quoted CEO Tim Cook saying that Apple was going to come up with some super, cool, technology to replace the iPhone as Apple’s cash cow.
However at the end of the day Apple’s iPhone business has hit a wall and there is no opening in sight. March-quarter units’ sales this year came in at 51.2 million iPhones, which was down from 61.2 million units in the same quarter last year.
It will get worse too because this year’s new iPhones will hardly be an upgrade and some of us are predicting further iPhone sales declines that reach well into 2017. If that happens Apple is going to have a devil of a job clawing back sales.
The Tame Apple Press did its best to spin the figures too. Jobs’ Mob earned $7.8 billion in net income, on sales totalling $42.4 billion. That is a slide from $49.6 billion. The press tells us that figure was a record and should not be used to gauge Jobs’ Mob’s current performance. It was better than analysts had predicted, it claimed. Given that analysts were expect it to be $42.1 billion we are not talking a big difference. It was also in the middle of what Apple itself had expected (although at the time the Tame Apple Press assured us that Apple guidance’s were always on the conservative side) .
All this promotion did help Apple avoid any slide in share price, but Cook’s attempts to calm long term investors were less successful.
Cook stressed that Apple is high on augmented reality for the long-run” and investing heavily. Augmented reality, in which computer-generated content is overlaid on the real world, is one of the latest fixations in the technology business, with Pokemon GO among the first applications to catch on.
Cook also highlighted Apple’s investment in artificial intelligence, which the company now uses to recommend content to users and even spot usage patterns to improve a device’s battery life.
However, the comments were weird. Apple has no AI or AR products in the works yet and if they were they are a long way away. In fact, Augmented reality and artificial intelligence don’t really work for Apple. It really is not an innovative company, it needs other people to create it before it appears on the market and claims to have invented it.
Analyst Bob O’Donnell of TECHnalysis Research said that Apple was wanting the world to know that they are working on it, but they have nothing to show for it. Which is basically what in the real press we call “spin”.