It has been a couple of years since Apple introduced its iPhone 6, its most successful iPhone release ever. Fast forwarding to 2016 and the tech giant never really quite managed to replicate that level of success. What is worse is that sales seem to be getting slower every quarter. Sure, the iPhone 6 was a record setting release for the company and it would really be hard to top that, but in recent quarters, it has been getting more difficult for Apple to generate some smartphone sales growth.
Make no mistake about it, the latest iPhone models are quite impressive devices. The bigger iPhone 7 Plus has wowed critics and consumers alike with its dual camera configuration (making way for really cool features like the Portrait mode) and water proofing capabilities. But iPhone fatigue has proven to be a lot more trickier to solve for Apple -- despite the good things the iPhone 7 devices can offer, they are still not enough to convince iPhone owners out there to upgrade to a new model.
Just this week, Apple released its latest quarterly results, reporting a third straight quarter of decreasing iPhone sales. As a matter of fact, Apple has now experienced its first ever fiscal year of declining iPhone sales, ever since the first iPhone was released back in 2007. It also hurt that overall sales and profit also dropped during the third quarter of this year -- revenue dropped 9 percent to $46.85 billion, while net income slid to $9.01 billion, compared to $11.1 billion a year ago. And even though Apple managed to sell 45.5 million units of iPhone devices in Q3 2016, that number is not an improvement over the 48 million sold in Q3 2015. If it is any comfort for Apple, the 45.5 million sales did surpass Wall Street’s projections of 44.2 million.
Moreover, the road ahead looks to be more challenging for Apple. With the release of its Pixel and Pixel XL smartphones, Google is heading to the busy holiday shopping season looking to entice mobile users to purchase a Pixel instead of an iPhone. But it is worth remembering that Apple has always performed well during holidays in terms of sales. And the company is confident it can come out winning -- it is projecting sales between $76 billion to $78 billion, which is more than what analysts are expecting ($74.98 billion).
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