Sales from Products & Services: A Company's sales from products decline while it's revenue from services go up. In a normal scenario, one would assume this indicating a saturation for its product market. But the products are still relevant, so the service revenue is high.
Sales across Geography: If the products are premium priced, and US being a developed economy and India being a developing economy, sales going down in the US but going up in India would indicate the product penetration across geography is coming to an end. What happens in the US is bound to happen in India too, but with a time lag.
Well, that is Apple for you. It is seeing revenue decline for three quarters in a row.
When iPhones were launched around 15 years ago, citizens of the US queued up to buy them. And at that time, people in India barely had any idea what it would be like to hold it in their hands. That has changed now. Euphoria for Apple's products seem to be waning in the US, while India's consumers are still riding the wave.
iPhones (& other Apple products as well) are luxury products. Mass market cannot afford them. So, what happened in the US - its sales reaching a saturation, would happen in India too. It is just a matter of time. Apple's product penetration seems to be in the final lap. And afterwards, it's sales decline would gather further steam. That seems to be the underlying trend.
Apple's founder and star marketer, Steve Jobs, died more than a decade ago. But his legend is not. The company he had built did well for many years even after his death, but how long this will go on? Apple has not launched any significant new product after Steve's death. While it did manage to upgrade its existing products, company's conference calls and management's interactions with the market appear dull.
As markets change and consumers move on once in a while, can Apple continue to dominate the mobile market? We don't know what all things Apple has in its arsenal. Since Apple does not make bold announcements before it is ready, it is difficult to assume things. But the excitement of consumers is fading away and that is being reflected in sales topping out and declining slowly.
World's biggest company need to be watched what it does to remain in the top as it seems to be struggling there. That too when it does not have any real competition currently. But the danger is, new technologies (AI, AR/VR) coupled with a broader ecosystem of wide ranging players can take the market away from Apple. All second level players want to be Apple. They will easily gang up against Apple, by either coordinating with each other or making partnerships.
Apple had killed many products and companies in the past which were ignorant of what Apple was developing. Now, if Apple does not act, tables might turn in due time.
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