Apple’s Slide Past ‘Peak Smartphone ’: iPhone Sales Decline And Revenue Well Below Expectation

Apple’s share dropped 10 per cent on 3 January (Thursday)- worst since 2013 and the company shed $74.6 billion in market value. Similar trend was visible across the technology companies , which suffered their worst loss in seven years.

Experts claim that the tech industry has reached ‘Peak Smartphone’- a point where everyone who can afford owns the smartphone, and no breakthrough is compelling them to upgrade as frequently as they did.

Apple’s iPhone demand is waning and revenue for the last quarter of 2018, due to a decrease traced mainly to China, will fall well below projections.

However, Apple is not alone in the sea. Demand has been lacklustre across the board even for the competitors like Samsung, where phone shipments dropped 8 per cent during the 12 months ending in September, as reported by Indian Express.

“Smartphone makers used to be like teenagers, and the industry was on fire. Now it feels like they’re more like senior citizens in terms of maturity,” said analyst Dan Ives of research firm Wedbush Securities.

Tech innovations grew in leaps and bounds in the early 2010s, but the industry is a victim of its own success as innovation began to slow down around 2014 after the release of iPhone 6 and new features tended to be incremental- which are not noticed by the consumers.