During the second quarter of 2016, Apple sold 51.2 million iPhones worldwide. This is a decrease of 16.3 percent, or about 10 million units, compared to the same quarter in 2015. While all other major Apple products - iPhone, iPad, and iMac - likewise experienced negative year-on-year sales growth during the second quarter, the iPhone is uniquely critical to revenue growth for Apple, accounting for 78 percent of sales volume and 65 percent of sales value for the company.
The bad news did not end there for the global brand, with deteriorating performance in total revenue, most geographic segments, and select other products also emerging:
Total revenue. For the first time in 13 years, Apple’s total revenue declined in the second quarter compared to the same period one year ago and is expected to continue to decrease on a year-on-year basis in the third quarter to the range of $41-43 billion. Apple's CEO Tim Cook attributed the decline partly to the macroeconomic environment.
Sales worldwide. Concerning sales by operating segments, all segments except for Japan demonstrated year-on-year declines during the second quarter. In Japan, sales of Apple products increased by as much as 23 percent, however, the market accounts for the smallest share of Apple’s total sales. The Americas remains Apple’s largest market. The company's other operating segments - Greater China, Europe and rest of Asia Pacific - account for 12, 11, and 3 percent of revenue, respectively.
Other products. iPad sales have now trended down for two consecutive years. Sales of the iMac also started to decline for this first time since 2013.
Partly due to the popularity of iPhone, Apple remains the world's most valuable brand, according to the latest Forbes' brand report. With an estimated value of $154.1 billion, the Apple brand is more valuable than that of Google, Microsoft, Coca-Cola, and Facebook. The company’s optimism looking ahead to future quarters is founded in part on "the incredible strength of the Apple ecosystem,” according to CEO Cook, and further bolstered by strong revenue growth for Apple services and other products, such as AppleTV and AppleWatch. Moreover, Apple still remains the second largest smartphone vendor in the world after Samsung.
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