Apple Forecasted to Report First Quarterly Revenue Decline Since 2003 - MacRumors
Skip to Content

Apple Forecasted to Report First Quarterly Revenue Decline Since 2003

Apple-downApple is set to announce its financial earnings results for the second quarter of the 2016 fiscal year at 1:30 p.m. Pacific, and the consensus among analysts is that the iPhone maker will report its first quarterly revenue decline in over a decade.

Wall Street analysts project that Apple will report revenue of around $52 billion, or nearly a 10-percent decline compared to the year-ago quarter. Today's earnings results are based on the three-month period between December 27, 2015 and March 26, 2016.

Apple itself projected quarterly revenue of between $50 and $53 billion, compared to $58 billion in the year-ago quarter, possibly signaling the end of over 50 consecutive quarters of year-over-year revenue growth dating back to 2003.

Tim Cook, CEO, already cautioned investors that iPhone sales will likely decline in the second fiscal quarter. That decline will be realized if Apple sells fewer than 61.2 million iPhones this quarter, which appears likely given most analysts expect sales to hover around the 50 to 51 million mark.

Apple-quarterly-revenue-2016

Apple's quarterly revenue between 2005 and 2016 (Source: Statista)

iPhone SE sales will not be included in that total, as the lower-priced smartphone launched on March 31, five days after the quarter ended.

MacRumors will be providing live blog coverage of Apple's earnings conference call with CEO Tim Cook and CFO Luca Maestri at 2:00 p.m. Pacific.

AAPL is trading slightly lower on the NASDAQ at around the $104 mark in pre-market trading ahead of today's announcement.

Popular Stories

iOS 26

iOS 26.4 Adds Two New Features to CarPlay

Tuesday March 24, 2026 1:55 pm PDT by
iOS 26.4 was released today, and it includes a couple of new features for CarPlay: an Ambient Music widget and support for voice-based chatbot apps. To update your iPhone 11 or newer to iOS 26.4, open the Settings app and tap on General → Software Update. CarPlay will automatically offer the new features so long as the iPhone connected to your vehicle is running iOS 26.4 or later....
Apple Business hero

Apple Unveils 'Apple Business' All-in-One Platform

Tuesday March 24, 2026 8:53 am PDT by
Apple today announced Apple Business, a new all-in-one platform that unifies device management, productivity tools, and customer outreach features. The service is designed to be a consolidated replacement for several of Apple's existing business-focused offerings, including Apple Business Essentials, Apple Business Manager, and Apple Business Connect. It provides organizations with a single...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 3, AirPods Pro 2 and AirPods 4

Tuesday March 24, 2026 12:31 pm PDT by
Apple today released new firmware for the AirPods Pro 2, AirPods Pro 3, and the AirPods 4. The firmware has a version number of 8B39, up from 8B34 on the AirPods Pro 3, 8B28 on the AirPods Pro 2, and 8B21 on the AirPods 4. There is no word on what's included in the firmware, but Apple has a support document with limited notes. Most updates are limited to bug fixes and performance...

Top Rated Comments

keysofanxiety Avatar
129 months ago
Good. Hopefully revenue decline might encourage them to update some of their products. Once they stop caring about squeezing as many profits from 16GB storage phones and aged tech in their computers, they might consider giving people a bit of value for money.

If they know they'll have revenue decline regardless of what they do, they might stop penny pinching.
Score: 68 Votes (Like | Disagree)
Benjamin Frost Avatar
129 months ago
I feel that Tim Cook's time as caretaker CEO is done.

He's guided Apple to outstanding profits, but has not shown that he can take Apple to new heights in the long-term. The Apple Watch is not a worthy successor to the Mac, the iPhone and the iPad, in my opinion.

In the five years that he has been CEO, he has never shown the passion for Apple products that Steve Jobs did. As a result, the public has become less enthusiastic also.

Finally, the area that Apple most needs attention is services. Eddy Cue is not the right man to lead this area, to put it mildly. Apple needs a major culture change to instil the right ethos for making high quality services. It goes against their traditional culture in a fundamental way, and requires strong leadership to overcome resistance in Apple. Tim Cook is not able to give this leadership, nor does he have the headhunting chops to find the right person; he is too nice, and doesn't have the sharpness in this field.

It's time for new blood.
Score: 67 Votes (Like | Disagree)
129 months ago
Deleted.
Score: 54 Votes (Like | Disagree)
Dilster3k Avatar
129 months ago
Very good. Their last September event was incredibly lacklustre, and especially last March's event that mainly revolved around left overs. (Things that could've been released last year but weren't to avoid cannibalising their own products)

They need a drastic attitudinal shift.
Score: 40 Votes (Like | Disagree)
spiderman0616 Avatar
129 months ago
Apple is a victim of its own success. The iPhone 6/6 Plus in 2014 filled a lot of pent up demand. It's not just a tough compare, it's an impossible compare. Wall Street and bloggers alike are interpretting this as the end for the iPhone. That couldn't be further from the truth.
Score: 40 Votes (Like | Disagree)
spiderman0616 Avatar
129 months ago
Good. Maybe revenue decline might encourage them to update some of their products. Once they stop caring about squeezing as many profits from 16GB storage phones and aged tech in their computers, they might consider giving people a bit of value for money.
This decline has nothing to do with anything you just said.
[doublepost=1461675021][/doublepost]
I feel that Tim Cook's time as caretaker CEO is done.

He's guided Apple to outstanding profits, but has not shown that he can take Apple to new heights in the long-term. The Apple Watch is not a worthy successor to the Mac, the iPhone and the iPad, in my opinion.

It's time for new blood.
This decline would have happened even if Steve Jobs were still alive and running Apple. No product can grow forever.
Score: 33 Votes (Like | Disagree)