Apple might lose its position as the most valuable company today. The company is expected to release its Q1 2016 earnings and analysts are seeing a dip in revenue for Apple.
Apple has been faced with series of challenges and those bottlenecks might have hurt its balance sheet. First is a slowing global economy. Particularly emerging and frontier market where Apple had bet on to grow its sales of cheaper iPhone such as the iPhone SE, the company plans to release in May.
[graphiq id=”kwis4KtrFKB” title=”Apple Product Unit Sales Over Time” width=”600″ height=”579″ url=”https://w.graphiq.com/w/kwis4KtrFKB” link=”http://smartphones.specout.com” link_text=”Apple Product Unit Sales Over Time | SpecOut” ]
Another major dent to Apple’s revenue outlook is its battle with the FBI that ended up battering the company’s image. The FBI unilaterally had gone ahead to hack the ‘Bernadino’ iPhone through suspectedly independent hackers’ group. Coming at a time when Apple’s iPhone SE and the latest iPad mini have not shipped, it therefore is a big setback for Apple.
Analyst are predicting the iPhone, the company’s cash cow might have gotten a year-on-year fall in its sales. This is a first in the history of the iPhone and the investor community might be dumping some of their holding in Apple’s shares for the first time.
In Q1 last year, Apple reported USD 58 billion in gross revenue and a net profit of USD 13.6 billion. This time around, analysts have predicted that Apple’s Q1 2016 revenue will dip to 52 billion, representing a -10.3% in revenue. This is an indication that Apple might have a tougher Q2 bearing in mind that its iPhone SE and iPad Mini have not been commercially released.
[graphiq id=”77UCFTux1Zz” title=”Apple (AAPL) Revenue – Last 5 Quarters” width=”650″ height=”535″ url=”https://w.graphiq.com/w/77UCFTux1Zz” link=”https://www.graphiq.com” link_text=”Visualization by Graphiq” ]
Unlike Apple, Alphabet made and it is still making bigger bets. In its result, the company’s recorded debts from bets are USD 633 million in Q1 2015 and USD 802 million; this is a growth of +21%. For Apple to make a big change to its revenue, it needs to make bigger bets. PageOne reported that Apple might be working on its iCar.
Apple’s result today has alot to do with its status. Google was dethroned by Apple last week when the company released a weaker Q1 2016 result making its stock to tumble by nearly 5%.
We all look forward to Apple’s result today.