Apple’s 13 years of astonishing growth is likely to come to a close today, with the company predicted to report its first quarterly revenue decline since 2003 — well before the iPhone, iPad and Apple Watch were even faint glimmers in Apple execs’ eyes.
The company is expected to reveal that March quarter sales fell 10 percent year-over-year to around $52 billion. Apple first warned that sales would fall in its forecast back in January, although today we’ll find out the extent of that slide.
Android’s massive lead in market share is translating into a staggering number of app downloads, with Google Play serving 85 percent more apps than the App Store during the second quarter of 2015. But despite that, iOS is holding onto a significant lead where it matters most — in revenue.
When it comes to app downloads, China and Mexico surged in the first fiscal quarter of 2015, says a report by the mobile analysts at App Annie.
China took the top spot for iOS downloads while Mexico now ranks among the top five countries for Google Play downloads, surpassing South Korea this quarter.
While we’ve seen Google Play lead the number of downloads across the globe and iOS facing a shrinking lead in revenue, Q1 2015 showed a huge jump for iOS in terms of revenue, to the tune of about 70 percent more (up from 60 percent higher in Q3 2014). Google Play continues to be top dog in downloads, though, with 70 percent more downloads than Apple’s digital storefront.
Mobile video game publisher Rovio Entertainment detailed Thursday its first revenue drop since the Finnish company hit it big with the Angry Birds franchise in 2009.
Perhaps the saturation of the market with no less than 11 Angry Birds-themed games since then (and three spin-offs) and way too many toys and animation projects has something to do with the loss of revenue, down 9 percent to $170.6 million in 2014.
Of course, as Rovio’s mobile gaming business did rise a bit (16 percent), making the overall drop in revenue that more incredible, the company seems to be focused on doubling-down on its mobile game offerings.
“2014 results show that steps in the game portfolio, free to play competency building and advertising are going in the right direction. I am confident that with new simplified organisation and clearer vision, we will be back to the path of growth in 2015,” said CEO Pekka Rantala in a statement.
Microsoft announced $24.52 billion in revenue the second quarter this year, showing gains across all segments of its consumer technology business, including Surface, Xbox, and Bing search.
As a previous heavy competitor and sometime collaborator with Apple, Microsoft hasn’t been doing as well in the post-PC era. It’s interesting that the company is defying expectations on the eve of CEO Steve Ballmer’s run at the company, with growth across the board, except in PC sales, of course.
Forget for a moment all the talk about Apple’s recent quarter financials disappointing Wall Street analysts — and instead focus on two “nuggets” from Apple’s recently released 88-page Form 10-K, as picked up by ISI’s Brian Marshall.
In a note to clients sent Thursday, Marshall notes that not only is Apple’s $11 billion in projected capital expenditures for fiscal 2014 a double-digit increase for a company already “the single largest CapEx spender” in his “Big 7 Hyperscale group”, but also that Apple generates “off-the-charts” revenue-per-head metric compared to the other IT and networking companies he covers — which includes Google (GOOG), Microsoft (MSFT), Amazon (AMZN), eBay (EBAY), Facebook (FB) and Yahoo (YHOO).
Google stock has risen 13% today, surpassing $1,000 for the first time ever. It comes a day after the search giant announced its earnings for last quarter, which beat Wall Street expectations thanks to a surge in mobile and video advertising that helped increase quarterly revenue by 23%.