In the first time in 15 years, Apple Inc. reported a decline in their annual revenue. However, they have projected that their new iPhone 7 will help bring in revenue during the current quarter, especially with Christmas coming up soon.
It is hard to imagine Apple ever struggling to make money. Ever since they released the first iPhone back in 2007, the company’s revenue growth had been increasing consistently. Their stock prices went from $18 per share all the way up to $118 per share in less than 10 years. Now, they struggle to keep the momentum going.
So, what has changed? Are people just sick of the iPhone? Reports show the buying habits of consumers are changing and that the smartphone market is not growing fast enough. This could be due to the slow-moving economy and the fact that people just don’t want to spend more money on a new iPhone that is similar to their current one.
The good news is Apple may have a chance to attract other smartphone users who currently use Android. Even though Android smartphones are a little bit cheaper, they don’t provide the same user experience as the iPhone. Plus, Samsung Electronics Co. is having troubles of their own right now with their Galaxy Note 7 smartphones. These phones apparently have issues with their batteries catching on fire and sometimes even exploding from getting overheated. There were even reports of the batteries exploding and giving users actual burns on their bodies.
With these kinds of incidents taking place, people are probably going to look for a more reputable alternative when purchasing their next smartphone. And now with the iPhone 7 coming out, this creates the perfect opportunity for Apple to gain on their competitors like Samsung by offering disappointed Galaxy users a better phone that won’t explode on them.