What Does it Mean that Apple's Revenue has Declined?

Pretty huge news in tech just a short while ago as Apple posted its first decline in revenue in 13 years.

Wow.

If a company isn't growing it is declining. Nothing in business remains stable for more than very short periods of time.

Here is one report on the story:

http://www.theverge.com/2016/4/26/11510312/apple-q2-second-quarter-2016-earnings

Here is a snippet from that piece:

Don't say they didn't warn you. Apple posted a year-over-year decline in revenue today, the first time the company's failed to grow its business in 13 years. It brought in $50.6 billion in revenue for the second quarter of 2016, and $10.5 billion in profits. That compares with $58 billion in revenue and $13.6 billion in profits during this period last year, a drop of 13 percent for the revenue. It is projecting another revenue decline for next quarter, a 15 percent year-over-year drop.

Just google the words "Apple Decline" to see how the stock is faring ... not good.  Now CEO Cook has publicly stated the pipeline of products is very exciting and all is well.  Okay.

Apple Watch.

Apple TV.

Apple Car?

Internet of Things?

????

What this really means is the period of explosive smart phone growth is behind us.  We now have a mature market.  What is next and will Apple be at the center of the customer experience for the next big thing?

Happy Reading,

J.W. Gant