July 27, 2016 2:53 pm | Updated 5 years ago.
The sale of Apple’s products has declined in recent months. Apple is at a crucial juncture as its 13 – year extraordinary revenue growth run comes to a staggering halt with the sale of its hardware products declining and the sale of its newly launched products not picking up as expected.
Besides this, Apple faces stiff competition from Chinese networking and telecommunications equipment manufacturing company like Huawei. The Chinese company has registered a decent profit in 2016 with low – end smart-phones but later plans to compete with Apple in the premium phone category too. In addition to this, Apple also faces some challenges in Europe over tax issues and is in conflict with the US government over privacy matters.
The only silver lining in Apple’s earnings is the increase in the sale of Apple’s applications. Also, Apple has seen an increased number of subscriptions to its music besides the payment collected through its Apple Pay.
Even though the market for Apple’s products seems bearish, the CEO of Apple is optimistic about the company’s future and negates opinions that Apple has lost its creative touch. He adds that in the long-run, Apple would be able to reach its goal of increasing sales with its services business generating enough revenue to become an independent company.
Date of Publication: July 26, 2016