Apple announces revenue decline but is optimistic about iPhone 7

Apple announces revenue decline but is optimistic about iPhone 7

Apple reported Tuesday that its fourth-quarter revenue declined 9 percent from last year to $46.9 billion, as people waited to get their hands on the latest iPhone.

With the newest device — the iPhone 7 and 7 Plus — being released in mid-September, the tail end of Apple’s fiscal fourth quarter, it did not have a large impact on the results.

Speaking before Apple’s earnings release, Cybart said that even if Apple’s other products — like the iPad, Macs and Apple Watches — were to see a sales increase, “nothing is going to impact the business as much as the iPhone.”

Apple’s outlook for its 2017 fiscal year has caused analysts to believe that sales for the iPhone 7 will beat its immediate predecessor, the 6S.

“When people step back and think about this quarter and (the forecast), they should feel better that the iPhone is returning to growth,” said Gene Munster, an analyst with Piper Jaffray.

[...] Samsung’s problems with its Galaxy Note7 smartphones that have exploded may also push more people to switch to an iPhone, said Abhey Lamba, an analyst with Mizuho Securities USA Inc.

[...] there is pressure on Apple to continue to expand other product categories, so that it is not overly reliant on iPhone sales.

Apple said revenue in its services category, which includes Apple Music subscriptions and sales from its App Store, grew 24 percent to $6.3 billion in its fourth quarter compared to a year ago.

[...] as rivals have built Internet-connected home devices like the Amazon Echo and Google Home, Cook indicated that having a digital assistant on a smartphone, as opposed to a stand-alone device, to help control the home is sufficient.