Apple with first profit decline in almost ten years

Apple with first profit decline in almost ten years

Year-on-year, however, this meant a drop of a good 18 percent. Sales increased by 11.2 percent to 43.6 billion dollars in the second quarter ended march, as the company announced after the US close on tuesday.

Apple sold 37.4 million iphones and 19.5 million ipad tablets in the past quarter. A year ago, there were 35.1 million iphones and 11.8 million iphads sold. Sales of mac computers stagnated at just under four million.

A slump in iphone sales, which was speculated about in media reports and analyst commentaries, did not materialize. Although sales could not be compared with the record 47.8 million iphones sold in the previous christmas quarter, the more affordable ipad is still a growth driver. However, business is increasingly weak after the festive season. The very strong previous year’s quarter was an exception with its profit of 11.6 billion dollars. This was partly due to the launch of the iphone 4S in china. This time, there was no such profit driver.

The iphone thus asserted itself as apple’s most important money machine. At the same time, it is not known how many units of the new and more expensive iphone 5 were sold and how high the share of cheaper older models was. The ipad confirmed its role as a growth engine after the launch of the smaller model in the fall. However, the cheaper ipad mini is also less profitable than the coarser version. This may have contributed to the drop in profits.

In view of the gigantic cash reserves of 145 billion dollars, apple is increasing the payout to shareholders. They are expected to receive around 100 billion dollars by the end of 2015. This is 55 billion more than previously announced. The share price, which had recently fallen sharply, rose by more than four percent to just over 423 dollars.

With the expanded debris, apple continues to meet years of demands from shareholders who wanted more of the ever-growing mountain of cash.

The former euphoria surrounding apple has now subsided noticeably. The share price fell from its record high of 700 dollars in september. Observers and investors are eagerly waiting for the company to turn the next industry upside down with a new product. The ipad was last introduced three years ago and revived the tablet computer market, which had been thought dead. For years, there has been speculation about an apple television and a cheaper iphone model, and recently also about a computer watch. But if and when these products will be launched is unknown.

Meanwhile, apple is launching more advanced versions of the iphone, ipad and mac computers, and experts are seeing increasing competition. In the meantime, the smartphone boom is spreading more and more to the developing countries, where more favorable smartphones are planned at the moment. Company boss tim cook has so far relied mainly on the fact that the segment for expensive computer phones will also become coarser over time.

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