CNN Money reports that Apple may report its worst quarter since 2007 due to sinking iPhone sales. Excerpts from the report:
The last time Apple’s sales fell year over year was the first quarter of 2003. At that time, the PowerMac was still the company’s bestseller. Apple had sold a grand total of 611,000 iPods to that point. And Apple hadn’t yet launched the iTunes Music Store.
But as rare an event as an Apple sales decline is, Wall Street analysts are expecting an even rarer occurrence last quarter — a double-digit sales loss. Apple hasn’t suffered that kind of ignominious fate since the fall of 2001. At that point, Windows 98 was the dominant computer operating system, and no one knew what an iPod was, because it hadn’t been introduced yet.
Times have certainly changed. Now, more than two-thirds of Apple’s revenue is made up of iPhone sales. So where the iPhone goes, so goes Apple — and last quarter is expected to have been a miserable one for Apple’s signature gadget.
Barring a miracle, iPhone sales will fall for the first time since the smartphone debuted in 2007.
Demand for the latest iPhone isn’t quite as strong as many had hoped. Cook said about 60% of iPhone customers haven’t yet upgraded to the iPhone 6 or 6S (or the 6 Plus or 6S Plus).
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