Shake it off

“OUR product pipeline has amazing innovations in store,” Tim Cook, the boss of Apple, declared on April 26th. He hoped to sound reassuring after the company reported its first year-on-year quarterly revenue decline since 2003. But he was not convincing enough. Shares of Apple fell by around 8% in the hours after its results emerged, erasing more than $46 billion in market value.

Investors’ immediate concern is the popularity of the iPhone. It accounts for the bulk of Apple’s revenues and profits; sales were 18% lower than a year ago. The broader smartphone market is sluggish, says Mr Cook. Apple hopes that the flashy new features of the iPhone 7, which it is expected to introduce in September, will convince customers to abandon older models. Until then, the company will probably face a further fall in revenue.

The bigger question that Mr Cook must answer is whether Apple will ever have another product as successful as the iPhone, the most lucrative in the technology business to date. Enthusiasm has waned for some of its other older products, such as iPads, and its newer ones remain niche offerings (see chart...

via Business Feeds

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