Apple Forecasted to Report First Quarterly Revenue Decline Since 2003

Apple-downApple is set to announce its financial earnings results for the second quarter of the 2016 fiscal year at 1:30 p.m. Pacific, and the consensus among analysts is that the iPhone maker will report its first quarterly revenue decline in over a decade.

Wall Street analysts project that Apple will report revenue of around $52 billion, or nearly a 10-percent decline compared to the year-ago quarter. Today's earnings results are based on the three-month period between December 27, 2015 and March 26, 2016.

Apple itself projected quarterly revenue of between $50 and $53 billion, compared to $58 billion in the year-ago quarter, possibly signaling the end of over 50 consecutive quarters of year-over-year revenue growth dating back to 2003.

Tim Cook, CEO, already cautioned investors that iPhone sales will likely decline in the second fiscal quarter. That decline will be realized if Apple sells fewer than 61.2 million iPhones this quarter, which appears likely given most analysts expect sales to hover around the 50 to 51 million mark.

Apple-quarterly-revenue-2016

Apple's quarterly revenue between 2005 and 2016 (Source: Statista)

iPhone SE sales will not be included in that total, as the lower-priced smartphone launched on March 31, five days after the quarter ended.

MacRumors will be providing live blog coverage of Apple's earnings conference call with CEO Tim Cook and CFO Luca Maestri at 2:00 p.m. Pacific.

AAPL is trading slightly lower on the NASDAQ at around the $104 mark in pre-market trading ahead of today's announcement.

Top Rated Comments

keysofanxiety Avatar
102 months ago
Good. Hopefully revenue decline might encourage them to update some of their products. Once they stop caring about squeezing as many profits from 16GB storage phones and aged tech in their computers, they might consider giving people a bit of value for money.

If they know they'll have revenue decline regardless of what they do, they might stop penny pinching.
Score: 68 Votes (Like | Disagree)
Benjamin Frost Avatar
102 months ago
I feel that Tim Cook's time as caretaker CEO is done.

He's guided Apple to outstanding profits, but has not shown that he can take Apple to new heights in the long-term. The Apple Watch is not a worthy successor to the Mac, the iPhone and the iPad, in my opinion.

In the five years that he has been CEO, he has never shown the passion for Apple products that Steve Jobs did. As a result, the public has become less enthusiastic also.

Finally, the area that Apple most needs attention is services. Eddy Cue is not the right man to lead this area, to put it mildly. Apple needs a major culture change to instil the right ethos for making high quality services. It goes against their traditional culture in a fundamental way, and requires strong leadership to overcome resistance in Apple. Tim Cook is not able to give this leadership, nor does he have the headhunting chops to find the right person; he is too nice, and doesn't have the sharpness in this field.

It's time for new blood.
Score: 67 Votes (Like | Disagree)
MacFather Avatar
102 months ago
Deleted.
Score: 54 Votes (Like | Disagree)
spiderman0616 Avatar
102 months ago
Apple is a victim of its own success. The iPhone 6/6 Plus in 2014 filled a lot of pent up demand. It's not just a tough compare, it's an impossible compare. Wall Street and bloggers alike are interpretting this as the end for the iPhone. That couldn't be further from the truth.
Score: 40 Votes (Like | Disagree)
Dilster3k Avatar
102 months ago
Very good. Their last September event was incredibly lacklustre, and especially last March's event that mainly revolved around left overs. (Things that could've been released last year but weren't to avoid cannibalising their own products)

They need a drastic attitudinal shift.
Score: 40 Votes (Like | Disagree)
spiderman0616 Avatar
102 months ago
Good. Maybe revenue decline might encourage them to update some of their products. Once they stop caring about squeezing as many profits from 16GB storage phones and aged tech in their computers, they might consider giving people a bit of value for money.
This decline has nothing to do with anything you just said.
[doublepost=1461675021][/doublepost]
I feel that Tim Cook's time as caretaker CEO is done.

He's guided Apple to outstanding profits, but has not shown that he can take Apple to new heights in the long-term. The Apple Watch is not a worthy successor to the Mac, the iPhone and the iPad, in my opinion.

It's time for new blood.
This decline would have happened even if Steve Jobs were still alive and running Apple. No product can grow forever.
Score: 33 Votes (Like | Disagree)

Popular Stories

General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
iPhone Notch

Apple Explored These Notch and Dynamic Island Designs for iPhones

Friday February 23, 2024 2:05 pm PST by
With the iPhone 14 Pro models in 2022, Apple introduced the Dynamic Island, which can morph and expand to display system alerts, sports scores, and a variety of other information. The feature makes the space surrounding the front camera and Face ID sensors useful compared to the notch on older iPhone models. Apple explored a variety of ideas for the iPhone's notch area over the years before...
Oled iPads and MackBook Pro Notch

Apple's OLED Roadmap: New iPad Mini, Foldable iPad Pro, and More

Wednesday February 21, 2024 5:29 am PST by
Apple is planning to launch at least nine new devices with OLED displays across the iPad and MacBook product lines, according to an updated forecast from research firm Omdia that sets out the company's plans in detail. As widely rumored, Apple's push to transition to OLED will apparently be jump-started by the release of new 11- and 13-inch iPad Pro models this year. The displays will...
Next Generation CarPlay Porsche 1

Apple Launching Next-Generation CarPlay This Year With These New Features

Wednesday February 21, 2024 2:03 pm PST by
Apple recently updated its website to confirm that the first vehicle models with next-generation CarPlay support will debut "in 2024." This wording is shown on Apple's regional websites for the U.S., Canada, Australia, New Zealand, and many other countries. The iOS 17.4 beta includes code-level references to eight new CarPlay apps:Auto Settings: This app will let you manage paired iPhones...
cracked glass vision pro

Handful of Apple Vision Pro Units Develop Identical Crack in Cover Glass

Friday February 23, 2024 4:46 am PST by
A small number of Apple Vision Pro owners have claimed that their headsets developed a hairline crack down the middle of the front cover glass, despite having never been dropped or mishandled. Photo of hairline crack in Vision Pro front glass (credit: Reddit user Inphenite) The first report was posted in the subreddit /r/VisionPro about 18 days ago, and several more have appeared in the last...