April 2016 has been hard for Apple Inc. when the stocks took a deep. A report was released which showed that the demand for iPhone was very low, for the very first time ever. All of that threw cold water on all hopes at Apple that there will be a turnaround. The iPhone has been a very popular mobile among all types of users especially among mobile casino gamblers that love to search for the latest no deposit bonus codes for mobile casinos on the iPhones.
Thanks to this stock dive Apple has reduced the production of its iPhone in the first quarter of 2016 as the Nikkei newspaper reported based on the information that Apple’s parts suppliers were notified of the same plan. In Nikkei’s report the production of the iPhone dropped by 30% in Q1. This was due to low sales of the iPhone 6 and 6S.
Thanks to Nikkei’s report, the Apple’s supplier shares dropped too. Cirrus Logic Inc.’s stock dropped 1.4% due to the fact that 72% of Cirrus’s revenue is largely tied to Apple. Apple was the biggest loser in April dropping 6% which brought stock’s 52-week decline to 30%. Each of its hardware sectors experienced lower quarterly sales.
The second half of last year was particularly hard period for Apple. It showed that consumers were starting to lose interest in Apple’s smartphone, which is regularly criticized as being overpriced given the slowing global economy and increasing competition. Compared to the first quarter of 2015 when Apple made 61 million sales, the company experienced a 16% in sales in the first quarter of 2016 which totaled to 51 million sold devices.
Investors received hope with Apple’s intention to introduce new products on the market which will probably increase the failing demand. Even though the newly released iPhone SE received frustrating reviews, Apple’s plans to produce it in large numbers may offset this slump that the company has experienced.
Nevertheless, Apple’s business is far from broken. The company produced a net income of $10.5 billion, which generated a $12 billion cash flow. On the bright side the division that includes Apple TV and Apple Watch expanded at a 30% rate, which is very respectable. Tim Cook and the team behind him predict another decline in the second quarter, while in Q3 profit margin and sales are set to drop 39% and $42 billion respectively. All that investors have to hope for is a killer upgrade on the next iPhone model, the 7.