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From the latest technological advancements to the coolest gadgets, at DHTS we love exploring the various aspects of the IT world. We're also interested in science and smart design too! We want to create a place where we can share and discuss the latest advancements, innovations and curiosities in the world of technology.

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2016 Is Looking Rough for Apple

Apple is synonymous with success. Or at least, that is what most people think. However if you dig a little deeper beyond the flashy gadgets and devices, you’d see that Apple is facing some troubles in the year to come.

The Good:

•    When measured by market value, Apple is the world's biggest company with a $595 billion market cap.

•    Apple has over $206 billion in cash on hand.

•    Apple had over $13.5 billion in cash flow last quarter.

•    Apple is expected to conduct $77 billion in sales this quarter.

The Bad:

•    The Apple Watch was a bit of a disappointment in the sales department.

•    Apple TV, although fine, is certainly not overly impressive or revolutionary.

•    As of late, Apple's software and services (Apple Music, Maps, Health, Photos) are lacking “the wow” factor.

The Ugly:

•    iPad sales are decreasing with no signs of improving.

•    iPhone sales could dip into the negative for the first time in history.

•    Apple is facing some legal issues regarding back taxes in Europe.

Software vs. Hardware

While Apple may have the highest caliber in hardware, they fall short at software and services. Take for example Apple Music, Apple News, Siri, or any of the other native applications that come with the iPhone. While they are all good, many argue that none of these services are the best. For example, Apple Music falls short to Spotify, consumers prefer Google Maps to Apple Maps, and so on and so forth.

It’s all in the perspective.

This all may seem troublesome for Apple, but even a “rough” year for the tech organization would be considered a monumental year for any other company. When it comes to profit and returns, Apple is leading the industry, just not to the degree they were anticipating for 2015. The iPhone was 63% of its revenue last quarter and a significantly higher percentage of its profits.

Ultimately, Apple has what the consumer wants: the best smartphone on the market, and as long as Apple continues to sell iPhones they will continue to rake in massive amounts of cash. On the flip side, if iPhone sales tilt sideways, it would pose a huge problem for Apple. If iPhone sales fall negative, Apple's revenue is likely to fall to the wayside as well, because the rest of Apple's lineup is facing similar, if not worse problems.

As we head into 2016, all eyes will be on the Apple Watch. Will Apple be able to juggle their young products and platforms, while simultaneously transforming their good services into great services? Either way, when it’s all said and done, Apple is facing a year of low, perhaps negative, sales growth in 2016 but their revenue stream is still impressive.

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Sunday, 24 September 2017
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