iPhone sales continued to decline in China during the second quarter of 2016, despite a slight rise in overall smartphone shipments. High-end devices from Samsung are also struggling, and it seems unlikely the situation will change soon.
Apple today revealed its results for the third fiscal quarter of 2016, and they make for surprisingly pleasant reading for investors. The company reported revenue of $42.2 billion and quarterly net income of $7.8 billion after App Store sales hit an all-time record.
Nobody’s expecting big things from Apple’s quarterly earnings call this Tuesday, but it is possible that we’ll hear one incredibly significant metric announced at the event: Apple’s sale of its billionth iPhone.
While it is likely that iPhone sales will continue to decline this quarter — with 40 million likely to be reported as the number for the past three months — the billionth sales mark would serve to underline once again just what an enormous success the iPhone has been for Apple.
Wearable shipments fell for the first time ever last quarter, and it’s all thanks to declining interest in an aging Apple Watch. Smartwatch vendors shipped just 3.5 million units during Q2 2016, down from 5.1 million units over the same quarter last year.
Apple is confident the iPhone will bounce back from its current slump in demand, but new forecasts suggest shipments will get worse before they get better. Researchers don’t expect growth to return until 2017 when Apple introduces bigger upgrades.