This website uses cookies to ensure you get the best experience on our website. OK
Opinion 208 Shares 16 comments

Apple posts iPhone sales dip: is the industry about to change?

Apple has just posted its financial results for the second quarter of 2016 and they reveal the company's first year-on-year decline for 13 years. What does this mean for Android and the smartphone landscape at large? It could mean big changes are afoot. 

AndroidPIT Sergio is thinking of getting iphone 3175
The iPhone SE (above) is Apple's latest effort to increase sales. / © ANDROIDPIT

“Apple”, “sales drop” and “more than a decade” all read well in headlines but this is no end-of-the-world scenario: Apple's second quarter sales of the iPhone are still exceedingly high. 

In fact, Apple's quarterly profit still represents one of the highest earnings of a fiscal quarter for any company, ever. 

What the numbers do show however, is that iPhones are not selling as well as they previously were. Specifically, iPhone shipped about 51 million units in Q2 2016 compared to about 61 million units in Q2 2015. 

If iPhone sales have reached their peak, it could be time for something new. 

AndroidPIT galaxy s7 vs iphone 6 1
The iPhone still measures up to the competition strongly in Q2 2016, despite reports. / © ANDROIDPIT

Smartphone sales are slowing

As I mentioned a couple of days ago (in the article everyone should have already read), smartphone sales are on the up, only they're rising at a slower pace than they once were. Smartphone shipments are generally increasing but Apple is currently receiving a smaller share.

This means that more money is going to Android developers and the reason, I suspect, is largely because Apple sold fewer iPhones in developing nations compared to low-cost Android handsets. 

Theoretically, more money into the Android ecosystem could result in higher investment in research and development and better products for all. Great. But there's another reason that these numbers may be good news for Android.

The next big thing

Apple has been accused of treading water in the recent past, releasing several variations of the iPhone which, for some, haven’t appeared all that interesting. Other innovations which were expected to increase Apple's revenue such as Force Touch, Siri and the Apple Watch have also struggled to capture the imagination of consumers.

AndroidPIT Sergio is thinking of getting iphone 3164
"We've sold how many?" / © ANDROIDPIT

Sadly, it's not just Apple: we are in the midst of a consumer tech lull, the effects of which can be felt on Android too. Apple has historically set trends in tech, whether their ideas were original or borrowed. But following these 2016 sales results, I'm more keen than ever to see what happens next. Because something has to. 

The worst case scenario for Android fans is that in a few months time Apple releases another bad iPhone and Android manufacturers reap the benefits. But I think there's a fascinating new tech product looming on the horizon and somebody has to deliver it. If Apple is the first one there, well, that wouldn't be so bad for us either.

Do you think 2016 will be the year the smartphone world gets shaken up? Or are you just happy to receive cheaper devices with better specs? Let me know in the comments. 


Write new comment:
  • Has anyone found anything in Marshmallow that adds extra functionality to the Note 5?
    I was a confirmed Windows Phone user before I came across the Note 5, at the time the flagship phone was the Lumia 930, and I can't see that there is much improvement since then, I still keep the 930 updated just in case something happens to my Note 5. The Note 5 is still an exceptional phone, but will Samsung carry on supporting the Note range?
    I would love to see a Note 6 Edge, something like an S7 Edge plus with a stylus, or is the Note 5 the end of the line?
    Come on Samsung, come clean and tell what is happening with the Note range!

  • drkmgiri 5 months ago Link to comment

    one more reason for saturation I feel is,from personal experience is here.I bought my note5 six months back and now hearing rumours of note6 due to competition among Android and Apple, the phones are pouring in by the time you enjoy the previous customers stick to the old one which is also likely to get newer why waste money on new hardware .and newer ones are expensive with little advantage.WHY I SHOULD SPEND MONEY FOR COMPETITION AMONG APPLE AND ANDROID.Samsung should launch series like S 7,S7.1,7.2,7.3...........S7.9😂😂😂

  • McNeil 5 months ago Link to comment

    Android caught up... Anything an iphone can do , Android can do it too(if not better).

  • 18
    anshul 5 months ago Link to comment

    At some period of time every product & company has stagnation point. It is necessary to break stagnation. Sales drop due to many reasons but the prime reason is serving same configuration with very few changes push people to explore new options. This is happening with both Android & iOS. Serving old wine in new bottle will not work always.

  • CJ Brown 5 months ago Link to comment

    I don't think it's just Apple's iPhone that's going to see a taper off of sales (even though I feel most of the population isn't going to overpay for an iPhone, when they can have a smartphone that functions good enough - or better - for a fraction of the cost).

    I think Samsung, LG, HTC, Sony, Motorola are going to see a percentage of their global sales drop due to more competition (Huawei, Xiaomi, ZTE, Oppo). It's possible that one year a consumer wants a smartphone, then the next year the same consumer wants a tablet.

    The same can be said of brand carriers vs no contract carriers, as a global population begins to embrace low-cost alternative smartphone services (why pay more to text talk data if you don't have to?)

    As consumers, we have choices, and it's starting to show on a global level.

  • a status symbal can not be on top always

  • The main reason is that noW iphones also hangs very badly that we have to sometime restart the phone the company now just for status symbol but nothing else

  • Mark 5 months ago Link to comment

    I think there are four main factors way Apple is losing ground.
    1) Is the status symbol or cool phone to own is starting to wear off.
    2) like you said they are redundant every IPhone looks like the last IPhone the only change is the size. In android you have so much more diversity in phone choice. In both looks and abilities.
    3) Smart phones have reach a point of development that you do not need a new phone every two years to run the latest apps and hardware. This is affecting sales of both Android and Apple.
    4) The world economy if slowing less people have the money to buy the high end phones.

    Can you use some new photos? This is the third article in two days with Eric Herrmann looking at the phone scratching his head

This website uses cookies to ensure you get the best experience on our website. More info

Got it!