Computer cross talk: The chips are down at Apple


Apple announced its Q2, 2016 results on April 27th. The Goliath of the techie industry (in financial terms) has posted the first ever year-on-year decline in 13 years. Apples $50.6 billion sales for Q2, 2016 are $8 billion shy of its Q2, 2015.

One thing stands out, while the $8 billion net revenue is lower than what Apple posted the same time last year, the figure is about 70 percent of the entire sales of Intel for the same period. Comparing apples to apples, quarterly sales of Apple are almost five times that of Intel.

What does this say about Apple? The company is still the leader of the park.


iPhone sales took a knock of 18.42 percent, iPad sales tumbled 18.7 percent while Macintosh sales suffered a mere flue that caused slump of nine percent. Apple music and iTunes sales compensated the losses on the other sectors; went up by 20 percent. Apple Watch and other products sales surged from S1.59 billion to $2.19 billion.

iPhone sales climbed up the peak to 74.47 million units in Q1, 2015. This followed the introduction of iPhone 6 and iPhone 6 Plus. These were larger-screen iPhone siblings. These models helped Apple rival Samsung’s larger screen Galaxies.

iPad sales rose sharply in Q1, 2014 but have since contributed a lot in slowing down Apple’s product sales. Apple worked so hard to refresh the iPad through product launches but that has failed miserably to arrest the downward trend. Even the not-so-long ago launch of the iPad Pro has not resuscitated iPad sales.


Like all tablet computers, the iPad is losing its market to the smartphone. Because smartphones are ever becoming sophisticated, tablets usage is now confined to pulpits and political podiums. Tablets sales seem to be suffering from the same malaise that has dogged PC sales for the last five years.

It is not surprising that Macintosh sales have go down by nine percent. Actually, this figure is suggesting that Apple manufactures less of Macintosh computers; otherwise, the damage should have been enough to disturb the bigger picture.

That said; the Mac Pro is three years old now. In computer terms, that is like a ninety year old person. Any time soon, new graphic chips are expected to be released for the Mac Pro and apple is expected to fuss new life into that product line in the next 12 months. That should spark new interest in Macintosh computers, although not much as the era of Macs is way past.

Both Intel and Apple quarterly results loudly say one thing: technology companies need to work extremely hard to come up products that can convince customers to abandon their status quo and go for new products. Otherwise, people today are more that delighted to make do with their gadgets for two to three years. To put it an American accent, people don’t seem to fix what ain’t broken these days.

That is the problem; financial results do not measure the things that matter, like the beauty of the debate of whether DOJ had any right to force Apple to create a tool to hack its own iPhone.

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