Lance Ulanoff of Mashable and Scott Martin of United Advisors break down Apple earnings.
Apple's stock was down 5% aftermarket after Apple reported the first revenue decline in 13 years. Apple's momentum is maintaining a slow decline because of its strong ecosystem, but Tim Cook is simply riding on Steve Job's innovation from years ago. Analysts talk of incremental innovation, but a lack of any stellar innovation. Analysts are saying that Apple no longer develops the game-changing products it used to produce.
Consider that while the innovation has stalled at Apple, the company still manages to abuse its customers by failing to support older equipment with planned obsolescence. Apple often lags in memory availability and even recently made their Mac Mini non-expandible by soldering RAM memory, which prohibits customers from expanding their computer's memory capacity when their budgets allow them to fund expansion. Apple iPhones have no memory expansion slots, and entry level iPhones barely have enough memory to function.
Operating system upgrades to Apple iPhones frequently slow them down to the point of being inoperable, and the upgrades often come with bugs because Apple failed to thoroughly test upgrades before releasing them to the public. With the amount of wealth that Apple has accumulated, they could fund a team that keeps older operating systems secure and viable. Along with the lack of innovation, perhaps the word is getting out that Apple cheats its customers. Apple needs to come up with innovative products that make replacing their obsolete products worthwhile. MakeOffice Chief Marketing Officer Shana Glenzer on the future of innovation for Apple as Stuart Varney asks "where is the innovation" and says that Tim Cook looks to be a failure as the successor to Steve Jobs.
After a big rollout and an announcement about the "revolution of TV" Apple didn't even mention AppleTV or tvOS in their quarterly earnings report. Apple's revenue dropped roughly 13 percent decline compared to $58.01 billion in the comparable year-ago period. The drop indicated the first year-over-year quarterly sales drop since 2003. The tech giant said it saw fiscal second-quarter earnings of $1.90 per diluted share on $50.56 billion in revenue. Wall Street expected Apple to report earnings of about $2 a share on $51.97 billion in revenue, according to a consensus estimate from Thomson Reuters. CNBC's Eunice Yoon reports on Chinese entrepreneur and LeEco CEO, Jia Yueting, calling out Apple over its innovation, as well as his company's new smart car to take on Tesla.
See also ... CNBC Rotten Apple: Stock plunges 8% on earnings, revenue miss
[Tim Cook] has yet to buy anybody to grow the business. He could buy Sonos, he could by Pandora, he could buy Tesla, he could by NetFlix; and he's done nothing. And they've got to do something. -- Ross Gerber, Gerberkawasaki CEO