Apple’s years-long winning streak finally ended on Tuesday.
For the first time in 13 years, Apple reported that it made less money in the last quarter than it had in the same quarter of the previous year.
The company said that it pulled in $50.6 billion in sales, falling short of analysts’ already lowered expectations of $52.02 billion, and the $58 billion it made in the same quarter last year. It also netted $10.5 billion in profits compared to an expectation of $11.1 billion and $13.6 billion in the same quarter last year.
“The future of Apple is very bright,” Cook told investors on Tuesday. “Our product pipeline has major innovation in store.”
To keep the results in perspective, Apple is still the richest and most profitable company in the world with a record war chest of more than $200 billion in cash and quarterly profits that eclipse the entire market value of most Fortune 500 companies.
Yet this downturn has been expected for some time now. Despite posting some of the most profitable quarters in corporate history and sustaining an impressive growth streak, Wall Street has constantly fretted over the company’s dependence on iPhones.
Each time, Apple had managed to buck those pessimistic expectations. Yet now it seems those long-held fears may finally have been partially realized.
Here How people Reacted to the same;
the chart of the list of stocks on the NYSE hitting new 52-week highs looks like a chart of apple. gross
— J.C. Parets (@allstarcharts) April 27, 2016
I have nothing against Apple. Fine company, but it’s just another in a long line of cult stocks. Heck, $CSCO hit $71 sixteen years ago.
— Rudolf E. Havenstein (@RudyHavenstein) April 26, 2016
The sad news about Apple today has nothing to do with profits, earnings, stocks, or buybacks. https://t.co/jMtgEgd8Ig
— Daniel Jalkut (@danielpunkass) April 27, 2016