Since the former CEO Steve Jobs created products from the iPod to the iPhone to iPad, Apple (NASDAQ: AAPL) fueled its historical growth more than a decade.
However, Apple on Tuesday posted its first-ever decline in iPhone sales and first revenue drop in more than a decade as the company credited with inventing the smartphone that struggles to gain market shares in its main markets, such as China.
Apple’s already immense size, weakness in key global markets, and the lack of another hot product to pry on the wallets of customers.
In China, the most important market after the U.S., The smartphone company’s sales dropped by more than a quarter. Furthermore, it also forecasts another disappointing quarter for global revenues.
The world’s most valuable company in the recent five years said on Tuesday that revenue for its second fiscal quarter, which ended in March, declined 13% to $50.6 billion and sales of its flagship product, the iPhone, fell too.
Over all, the Silicon Valley giant sold 16% fewer iPhones in the quarter compared with the same quarter last year.
“There’s no question that Apple’s best days are behind it,” said Toni Sacconaghi, an analyst at the Bernstein brokerage firm. “The company grew at astronomical rates, and it’s now so big that its ability to grow at those rates doesn’t exist anymore.”
Apple’s disappointing quarter is the latest one among the recent bad reports from the biggest technology companies. While the reasons may vary, including the long slump in personal computer sales and slipping prices for online ads, the key factor is that those companies have grown into giants. It’s become harder and harder to keep up the momentum.
Apple’s chief executive, Timothy D. Cook, saw the decline as a “pause,” not a fundamental change in its core business. “This, too, shall pass,” he said in a call to discuss the numbers. “The future of Apple is very bright.”