NEWSApple’s executives would like you to notice that
this quarter iPhone sales were only down 12 percent
versus the year-ago quarter, as opposed to last
quarter’s 17 percent drop. So iPhone sales are down,
but less down than they were? It’s not the strongest
story. The truth is, the iPhone is looking like a cyclical
business, where sales shoot through the roof when
there’s a major change in design, and then sales just
glide downward until three years later when there’s
another major change. Now, keep in mind that Apple
still generated $26bn in iPhone revenue – even with
sales sliding, the iPhone is an enormous, profitable
business. But it’s such a huge part of Apple’s business
that it dominates how the company is evaluated.
And barring a massive change in iPhone design thisNEWS
Apple’sexecutiveswouldlikeyoutonoticethat
this quarteriPhonesaleswereonlydown 12 percent
versus theyear-agoquarter,asopposedtolast
quarter’s 17 percentdrop.SoiPhonesalesaredown,
butlessdownthantheywere?It’snotthe strongest
story.Thetruthis,theiPhoneislookinglikeacyclical
business,wheresalesshootthroughtheroofwhen
there’s a major change in design, and then sales just
glidedownwarduntilthreeyearslaterwhenthere’s
anothermajorchange.Now,keep inmindthatApple
stillgenerated$26bniniPhonerevenue– evenwith
salessliding,theiPhoneisanenormous,profitable
business.Butit’ssuchahugepartofApple’sbusiness
thatitdominateshowthecompanyisevaluated.
And barring a massive change in iPhone design this