Apple’s iPhone Sales Flat for First Time since Fiscal 2007


Dec. 4 2020, Updated 3:53 p.m. ET

iPhone unit sales below analyst estimates

As you can see in the graph below, Apple (AAPL) sold 74.8 million units, generating $51.6 billion in revenues for fiscal 1Q16. In comparison, it sold 74.7 million iPhones in 1Q15, generating $51.2 billion in revenues. iPhone sales have been flat year-over-year, not growing for the first time since fiscal 2007. This indicates that the incremental upgrades to the iPhone 6S didn’t boost sales. The iPhone is the flagship product of Apple, constituting 68% of revenues in fiscal 1Q16.

In the last few months, many investment firms, including Morgan Stanley (MS) and J.P. Morgan (JPM), lowered iPhone estimates. Wall Street expected a shipment of 76.5 million units in fiscal 1Q16.

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Tim Cook, Apple’s CEO (chief executive officer), was positive on the iPhone numbers. He stated, “We sold 74.8 million iPhones in the December quarter, an all-time high. To put that volume into perspective, it’s an average of over 34,000 iPhones an hour, 24 hours a day, seven days a week for 13 straight weeks. It’s almost 50% more than our Q1 volume just two years ago and more than four times our volume five years ago.”

Will supply chain fears continue?

Analysts expect unit sales for the iPhone to be negative for the first time in calendar 2016, driven by supply chain concerns and slowing growth in China’s (FXI) smartphone market. According to market research firm IDC, China’s smartphone shipments are expected to fall 1.2% in calendar 2015 compared to an increase of 19.7% in calendar 2014.

Since November 2015, Apple’s share price has declined 17.5%. In the same period, shares of Apple suppliers such as Qorvo (QRVO) and Skyworks Solutions (SWKS) have declined 13% and 15%, respectively.


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