During the second quarter of 2016, Apple sold 51.2 million iPhones worldwide. This is a decrease of 16.3 percent, or about 10 million units, compared to the same quarter in 2015. While all other major Apple products - iPhone, iPad, and iMac - likewise experienced negative year-on-year sales growth during the second quarter, the iPhone is uniquely critical to revenue growth for Apple, accounting for 78 percent of sales volume and 65 percent of sales value for the company.
The bad news did not end there for the global brand, with deteriorating performance in total revenue, most geographic segments, and select other products also emerging:
Total revenue. For the first time in 13 years, Apple’s total revenue declined in the second quarter compared to the same period one year ago and is expected to continue to decrease on a year-on-year basis in the third quarter to the range of $41-43 billion. Apple's CEO Tim Cook attributed the decline partly to the macroeconomic environment.
Sales worldwide. Concerning sales by operating segments, all segments except for Japan demonstrated year-on-year declines during the second quarter. In Japan, sales of Apple products increased by as much as 23 percent, however, the market accounts for the smallest share of Apple’s total sales. The Americas remains Apple’s largest market. The company's other operating segments - Greater China, Europe and rest of Asia Pacific - account for 12, 11, and 3 percent of revenue, respectively.
Other products. iPad sales have now trended down for two consecutive years. Sales of the iMac also started to decline for this first time since 2013.
Partly due to the popularity of iPhone, Apple remains the world's most valuable brand, according to the latest Forbes' brand report. With an estimated value of $154.1 billion, the Apple brand is more valuable than that of Google, Microsoft, Coca-Cola, and Facebook. The company’s optimism looking ahead to future quarters is founded in part on "the incredible strength of the Apple ecosystem,” according to CEO Cook, and further bolstered by strong revenue growth for Apple services and other products, such as AppleTV and AppleWatch. Moreover, Apple still remains the second largest smartphone vendor in the world after Samsung.
Interested in a global business intelligence subscription that includes datasets, visualization tools, and real-time information for assessing political, security and business risk? Check out the Emergent Risk Situation Room from our partners at Emergent Risk International.
India is not only the third largest economy in the world, but of the top 10 largest economies globally, it has the third highest share of bad loans, too. India's non-performing loans represent 10 percent of total bank loans and about $210 billion of outstanding debt. Since 2008 when attention shifted globally to financial stability and the role of the banking sector, the share of non-performing loans in India has grown by 7.5 percent and is expected to worsen in the coming years, according to the Central Bank of India.To preempt a major national banking crisis, New Delhi is striving to clean up stressed debt with the help of resolution...
Ecuador has the world's highest share of nascent entrepreneurs per capita at about 30 percent of the population. This measure is known as total early-stage entrepreneurial activity (TEA). But, does this mean that Ecuador is more entrepreneurial than the United States, which has a TEA of only 14 percent? The answer depends on how we define “entrepreneur”. One key global economic growth driver is the ability of an entrepreneur to bring a concept to market, adding to national income, providing new goods and services, and creating jobs. In doing so, innovative entrepreneurship contributes to the foundation of a stable and civil society. By...
Today Starbucks is the largest coffeehouse company in the world, with 27,339 retail locations as of the first quarter of 2018, followed distantly by such coffee shop chains as Dunkin Donuts with about 10,000 restaurants, Tim Hortons with 4,300 outlets, and Costa Coffee with nearly 1,700 stores worldwide. Starbucks was founded in 1971 in Seattle, Washington, and incorporated on November 4, 1985 to become the publicly traded Starbucks Corporation. Based on the company's positive, sustained operating results, it is ranked among Forbes' top-500 world's biggest public companies. As of 2017, Starbucks' profit was $2.9 billion and it had a market...