Apple faces first major loss in 13 years

Published: April 28, 2016

 photo courtesy of wikimedia commons Since Tim Cook (right) has taken over as CEO of Apple Inc. He has had trouble innovating as well as his predecessor, Steve Jobs (left). This can be seen in the Apple Watch flop and a decline in new generation iPhone sales.

PHOTO COURTESY OF WIKIMEDIA COMMONS / SINCE Tim Cook (right) has taken over as CEO of Apple Inc. He has had trouble innovating as well as his predecessor, Steve Jobs (left). This can be seen in the Apple Watch flop and a decline in new generation iPhone sales.

WILL HORN
Business Editor

Apple Inc. posted its first quarterly revenue decline in 13 years. This has come as a shock due to the vast support behind Apple. Apple has been consistently rising, and this new change will surely bring speculative light on the current CEO Tim Cook. Cook took over in 2011 after Steve Jobs’ death. Apple has not had an new product idea released to the public since the Apple watch, which has not been as successful as they would have hoped. Also, iPhone sales have started to dwindle as people have stopped upgrading with each new generation.

“I think that it’s a representation of Apple’s inability to innovate,” said Jason Martinez a junior international business major.

This is a prime example of the public’s opinion of Apple’s future. If Apple wants to regain the public’s confidence, then it needs to start developing new technologies that have actual innovations. Apple reported that part of the problem leading to the decline was that they were facing strong negative economic headwinds. Apple’s stock fell 8 percent since the release of their earnings, and many analysts have changed their thoughts about Apple. Apple has also planned to increase its public image by increasing the quarterly dividend.

Apple’s products have not been the only ones to see a fall in sales. Microsoft, Twitter and Google all have seen declines in the past few months. All of these companies also showed declining earnings. This trend shows that consumers’ confidence in technology is declining.

While all these companies have great promise, they need to continue to stay in the public eye, or they are sure to start to fail. The best way to do this is to continually release new products such as Microsoft’s new Surface Pro 4 Tablet computer or the Apple Watch. This is a much tougher issue for companies like Google to address because they do not offer many tangible products. Twitter faces an even tougher challenge as it only offers one service that has had trouble competing with new applications. In any case, if Apple and its cohorts are to survive they will need to reverse the public opinion.

Contact the writer: harry.horn@scranton.edu

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