Changing tech market creates Apple turnover


Photo Courtesy of Andy/ Flickr CC Toreros are questioning if Apple is still a leader in the tech world.

Photo Courtesy of Andy/ Flickr CC
Toreros are questioning if Apple is still a leader in the tech world.

Apple products such as iPhones, iPads, and Macbooks are seen all around the University of San Diego, as well as on college campuses throughout the country. However, despite their continued popularity, this trend may begin to change in the near future.

On Tuesday, April 26, Apple Inc. released the financial statement of its most recent quarter, and the results were not promising. It recorded a 13 percent drop in its average sales revenue.

According to The Guardian, this is the first decline in revenue Apple has experienced in 13 years.

Market analysts presume that a part of this decline in sales is rooted in China, one of Apple’s main product target markets. China’s once bustling economy has now become tumultuous and unstable, resulting in a steep decrease in the amount of sales in Apple’s diverse product lines, particularly with iPhones.

Apple’s lowered revenue is expected to continue, which has its shareholders more than hesitant to purchase new stock in the company.

The bulk of Apple’s revenue is generated from the sale of iPhones. The face of the company rests heavily on the continued success of this featured product.

The company has raked in over $32.9 billion in revenue from iPhone sales so far this year, with total sales, including all of its other products, adding up to $50.6 billion.

Another reason Apple is beginning to experience a decrease in revenue is due to loss of sales to other companies. Other tech giants such as Samsung and IBM continue to grow in their popularity and range of products.

Competing products such as Samsung’s popular water-resistant S7 phone have some people questioning whether Apple is still a leader in technological innovation.

For the last decade, Apple has been known as a leader in technological innovation, but the release of products such as the Apple Watch and Apple TV haven’t been as successful as the company had originally anticipated. Products including these have not helped propel the company forward financially. In the wake of stiff competition, Apple is pressured to continue to be innovative, even at the risk of creating products such as these that fail to bring in sizable revenues.

Senior Ghazal Babai explained why she chose to purchase an iPhone.

“I chose the iPhone because it seemed that there are more applications available for it,” Babai said. “I have an HP laptop, but I already knew how to operate the iPhone from using other Apple products so I felt that it would just be an easy transition.”

Babai also shared her opinion on the state of Apple’s decline.

“I think it’s very possible that a competitor such as Samsung can soon beat out Apple,” Babai said. “However, I think Apple will always remain in the top three tech companies. Hashtag product loyalty.”

Senior Claudio Trespalacios shared why he chose a Samsung phone over Apple’s iPhone.

“I have the Samsung Galaxy Note 5,” Claudio said. “I chose it because of its specs, like its better camera, longer battery life, operating system, and its hardware, such as its design and the stylus pen.”

Trespalacios also expressed his opinion about whether Samsung could one day replace Apple as the foremost leader in technological innovation.

“I don’t know,” Trespalacios said. “Apple has a very strong following and it is always at the front of the tech industry. The only company who could replace them would be Samsung but I don’t see it happening anytime soon unless Apple messed up and doesn’t fix their current problems.”

According to The Guardian, Apple CEO Tim Cook has addressed Apple’s recent decline and shareholder’s fears about the future financial success of the company.

“Despite the pause in our growth, our results reflect excellent execution by our team despite strong macroeconomic headwinds in most of the world,” Cook said.

Regardless of the company’s financial slump, Cook remains optimistic about the future of Apple.

Despite the company’s recent financial decline and uncertain future, Apple products are still widely popular with USD students and faculty, as well as on other college campuses. Apple Inc. is currently the most valuable publicly-traded company in the world, but if its revenues continue to fall, this may soon change. With the impending release of the iPhone 7, only time will tell if the company will be able to maintain their innovative and competitive edge.