This is why rumors of problems at Apple are false

OPINION: Many titles this month seem to suggest that Apple is doomed. Which is totally mental for a company that has just posted quarterly profits of 51.98 billion US dollars (75.1 billion New Zealand dollars). And that is only selling iPhones.

Overall, the company has realized 84.3 billion US dollars in the last three months of 2018. The bubble has not burst. And we should probably stop talking about Apple in a bubble.

So what caused all this hysteria? Let me explain.

What's really happened to Apple?

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It all began Jan. 2, when CEO Tim Cook warned investors that Apple was expecting lower-than-expected revenue in the first quarter. This warning had an immediate effect on the course of Apple's action. It dropped nearly 10% that day.

What really caused this dive? Good question. And there is not a single reason for lower incomes than usual Apple. But, roughly speaking, it can be divided into three areas.

The first two reasons are easy to understand. Cook says people keep their iPhone longer than a few years ago. Which obviously means that they do not buy new iPhones at the prolific pace that they once were. Cook also admits that the price of new iPhones has played a role.

The third reason? Macroeconomics. This is the biggest explanation for the slowdown. This comes from Luca Maestri, Apple's chief financial officer, who said "we expect a weaker macroeconomic environment on an annual basis, especially in emerging markets, including China."

Cook echoed this logic in his statement to investors: "Macroeconomic factors come and go, we are optimistic by continuing to focus on things we can control … we will not change our position for anyone. . "

What makes sense.

As I pointed out above, Apple's smartphone division has recorded quarterly profits of 51.98 billion USD (coming from sales of the iPhone). Which is incredible. But this translates into a 15% annual decline in iPhone revenue. Which is not trivial for investors.

Revenue from all other Apple products and services grew 19% year-over-year.

A volatile month for Apple's stock price

This month, Apple's stock price has been tough. After losing nearly 10% of its value on January 3rd, it has steadily risen since. Until January 29, date on which the company published a profit report higher than expected (but still down every year).

iPhone: 51.98 billion USD vs. 52.67 billion USD (estimate)

iPad: 6.73 billion USD v 5.90 billion USD (estimate)

Mac: 7.42 billion USD / 7.42 billion USD (estimate)

Clothing, home and accessories: $ 7.31 billion versus $ 7.33 billion (estimate)

What's next for Apple?

Interesting rumors. That's what.

Cook has already hinted at the drop in the price of the iPhone in international markets. Rumors have also spread that the new iPhone will feature three cameras and will align with the rest of the industry by offering USB-C ports.

All the good things, in my opinion. But probably not the seismic change needed to combat the current (global) economic climate.

Apple needs something totally new.

And if we believe the rumors, this is exactly what Apple plans. Evidence suggests that Apple will launch subscription services to news and television. These will join Apple Music as an independent, paid monthly service.

9to5Mac, an Apple-based website, has found an overview of Apple's news subscription service in a developer version of iOS 12.2. This confirms another rumor published by the New York Times in October, suggesting that Apple was working on a premium news application.

There is also evidence that Apple will launch a streaming TV service. The company recently signed contracts with Oprah Winfrey, the creators of Sesame StreetDamien Chazelle (Director of La La Land), and for a new drama starring Reese Witherspoon and Jennifer Aniston.

This means that the television service should be operational from its launch, probably in March or April.

Apple has not confirmed or denied that it is a press service or a subscription service on TV. It's a long-term business policy never to comment on rumors.

However, judging from the evidence presented, combined with Apple's product line, I think it's more than likely that we'll see both this year.

Will this be enough to restore the growth of Apple's profits? Let's see how good these new TV shows are first.