The Economic Mood Darkens: iPhone Sales Plunge 15% As Consumer Confidence Falls For The 3rd Straight Month

Apple iPhone sales are never supposed to go down.  For nearly two decades, Apple has been an unbeatable economic miracle, but now it appears that times have changed.  Global sales for the iPhone were disastrous during the holiday quarter, and this is yet another indication that the global economic slowdown is accelerating.  Here in the United States, auto sales have been abysmal, retail bankruptcies have been surging and home sales have been seriously declining, but the big tech giants were supposed to be an economic bright spot that we could always rely on.  Perhaps that is why so many investors were shocked when Apple announced their most recent quarterly results on Tuesday

Sales of Apple’s flagship iPhones plummeted 15% during the holiday quarter, a sharp deterioration in a business that the company said Tuesday will continue to struggle in the coming months.

Apple gave a weaker-than-expected sales-and-profit forecast for its fiscal second quarter. Its guidance calls for sales to fall by as much as 10% and for its earnings per share to plunge by as much as 22%.

Apple is openly admitting that this is not just going to be a one quarter anomaly.

The company is telling us that sales are going to continue to fall in the months ahead, and that is very alarming news.

In fact, we haven’t seen Apple sales fall on a year over year basis since the year 2000

The last time Apple’s holiday quarter sales fell, America was consumed with Bush v. Gore and Tom Brady had one completed pass in his career.

Apple’s sales fell 15% in the last three months of 2018 — and that’s the first time Apple’s sales dropped during the final quarter of the year since 2000.

Speaking of Tom Brady, what he has accomplished is nothing short of remarkable.  This will be his ninth Super Bowl as quarterback with the Patriots, and that is a record that will never, ever be broken.

But we have to go all the way back before his first Super Bowl to find a time when Apple sales declined, and that just shows how dominant Apple has been over the years.

I have to admit that I have an iPhone myself, and I really like it.  I know that some people have complaints, but over the years Apple has made good products and it is easy to understand why they have been so successful.

Unfortunately, the economic winds are shifting.

One of the big factors that is hurting Apple is our trade war with China, and Apple CEO Tim Cook is reportedly in “regular contact” with President Trump about this…

Cook, who is in regular contact with U.S. President Donald Trump, told Reuters he sees some hope that trade tensions between the United States and China have eased, and that the company is considering pricing its phones in local currency in China and other international markets, which may spur sales.

Hopefully there will be a positive resolution to this trade conflict in the near future, but at this moment that is looking doubtful.  And now that the U.S. has formally requested the extradition of Huawei CFO Meng Wanzhou, the chances of a comprehensive trade agreement have deteriorated considerably.

Apple has been successful for a very long time, but the tech industry is constantly evolving, and consumer behavior is shifting at an extremely rapid pace.  For example, one recent survey indicated that almost 60 percent of all Americans have already canceled cable television

Nearly 60 percent of Americans have canceled their cable television subscription – and just 12 percent said they are committed to sticking with their cable package, according to a new survey.

An additional 29 percent of Americans are considering cutting the cord on their traditional cable subscription.

The entire cable television industry is living on borrowed time, and they are going to have to adapt to the new paradigm that is emerging if they are going to survive.

In the headline of this article, I also noted that consumer confidence has just fallen again.  In fact, Breitbart is calling it “the third consecutive steep monthly decline”…

Consumer confidence took another hit in January, as the government partially shut down while Capitol Hill Democrats and the Trump White House battled over funding for a border wall.

The Conference Board’s Consumer Confidence Index decreased in January, the third consecutive steep monthly decline.

The index fell to 120.2 from December’s revised down 126.6. Economists had expected a milder decline to 124.3.

This is a clear indication that the economic mood in this country is getting darker.

But the good news is that things have calmed down on Wall Street.  After the worst December since the Great Depression, the stock market has bounced back a bit in recent weeks.

So the truth is that 2019 is off to a better start than many had anticipated.  That may not last for very long, but at least for the moment investors have a reason to smile.

And we should all be hoping for stability for the financial markets for as long as possible.  Because once this bubble finally bursts, it is going to be virtually impossible to put the pieces back together once again.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites all over the nation.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Economy In Decline: Apple Reports Massive Revenue Decline As iPhone Sales Plummet Dramatically

Apple iPhone And Apple Computer - Public DomainCorporate revenues in the United States have been falling for quite some time, but now some of the biggest companies in the entire nation are reporting extremely disappointing results.  On Tuesday, Apple shocked the financial world by reporting that revenue for the first quarter had fallen 7.4 billion dollars compared to the same quarter last year.  That is an astounding plunge, and it represents the very first year-over-year quarterly sales decline that Apple has experienced since 2003.  Analysts were anticipating some sort of drop, but nothing like this.  And of course last week we learned that Google and Microsoft also missed revenue and earnings projections for the first quarter of 2016.  The economic crisis that began during the second half of 2015 is really starting to take hold, and even our largest tech companies are now feeling the pain.

This wasn’t supposed to happen to Apple.  No matter what else has been going on with the U.S. economy, Apple has always been unshakeable.  Even during the last recession we never saw a year-over-year decline like this

Apple today announced financial results for the second fiscal quarter (first calendar quarter) of 2016. For the quarter, Apple posted revenue of $50.6 billion and net quarterly profit of $10.5 billion, or $1.90 per diluted share, compared to revenue of $58 billion and net quarterly profit of $13.6 billion, or $2.33 per diluted share, in the year-ago quarter. As expected, the year-over-year decline in quarterly revenue was the first for Apple since 2003.

I think that this announcement by Apple is waking a lot of people up.  The global economic slowdown is real, and we can see this in iPhone sales.  During the first quarter, Apple sold 16 percent fewer iPhones than it did during the same quarter in 2015.  This is the very first year-over-year quarterly sales decline for the iPhone ever.  Here are some of the specific sales figures from the Apple announcement…

Apple sold 51.1 million iPhones during the quarter, down from 61.2 million a year earlier, while Mac sales were 4.03 million units, down from from 4.56 million units in the year-ago quarter. iPad sales were also down once again, falling to 10.25 million from 12.6 million.

Once these numbers hit the wires, shares of Apple immediately began to plummet during after-hours trading.  In fact, USA Today is reporting that Apple has already lost 43 billion dollars in market value since the annoucement…

Shares of Apple are getting hit roughly 8% in after-hours trading, tumbling to $96.67. They closed in regular trading at $104.35, or down 0.7%, putting them down 0.9% for the year. The downward move in after-hours trading means the company shed $43 billion in market value based on after-hours trading.

Wow.

Meanwhile, shares of Twitter are crashing in after-hours trading after the social media giant also announced very disappointing results.  The stock has now dripped below 16 dollars a share, and the company continues to lose tremendous amounts of money

For all its other travails, Twitter is unprofitable. It narrowed its loss but still recorded a loss of $79.7 million, or 12 cents a share, compared with a loss of $162.4 million, or 25 cents a share, in the year-ago quarter.

Of course it isn’t just the tech giants that are troubled these days.

On Tuesday we learned that same-store sales for Chipotle declined by a whopping 29.7 percent during the first quarter, and appliance manufacturer Whirlpool has seen sales fall all over the planet

Whirlpool, the world’s biggest appliance manufacturer, has become the poster child for the deep challenges facing multinational companies these days.

– Latin American sales plunged 22%.

– Revenue fell 8% in Europe, Middle East and Africa.

– Asia sales dipped 2%.

When is it finally going to sink in for most people?  The global economy is slowing down significantly, and the next global economic crisis is already here.

Of course the oil companies are feeling more pain than anyone else.  According to CNN, the crash in the price of oil has cost the 40 largest publicly-traded U.S. oil producers 67 billion dollars

American oil companies are drowning in a sea of red ink.

The crash in crude oil prices caused a stunning $67 billion in combined losses by 40 publicly-traded U.S. oil producers last year, according Energy Information Administration research. And the bleeding is expected to continue at least early this year for many.

The losses surpassed $1 billion each from struggling oil companies like EOG Resources (EOG), Devon Energy (DVN) and Linn Energy (LINE) as well as SandRidge Energy (SD), the shale oil driller that recently admitted it’s exploring a bankruptcy filing.

That is an astounding amount of money.

These days we throw around terms like “millions” and “billions” so much that they almost lose their meaning.

But this is real money that we are talking about here.

In recent days, Barack Obama has been running around boasting that he saved the world economy from another Great Depression.  But that isn’t true at all.  Instead, our “leaders” have simply set the stage for a larger and more painful crisis.  I like the way that Doug Casey recently put it

You’ve got to remember that all of these governments and central banks all around the world have driven interest rates not just to zero, but to negative levels in some cases… and they are simultaneously printing up trillions of currency units. And even while they are desperately doing that the economy is falling apart in lots of different ways.

…They’ve created a super-bubble in bonds, a bubble in stocks, and meanwhile commodities have collapsed and are below production costs in many cases.

…The economy is going to be very, very bad… It’s the next stage of what I call the Greater Depression. 

Whether you want to call it a “Great Depression”, a “Greater Depression” or “The Greatest Depression”, the truth is that we are heading into a period of time that will be unlike anything any of us have ever experienced before.

The greatest debt bubble in the history of the planet is starting to implode, and this time the central bankers and the politicians are not going to be able to put the pieces back together again.

But just like in 2008, the vast majority of the population will not recognize the warning signs until it is way too late.

*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*

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