Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      South Africa's 3G networks could go dark within two years - Dejan Kastelic

      South Africa’s 3G networks could go dark within two years

      28 October 2026
      Vodacom books R23-billion Safaricom gain as court fight rages

      Vodacom books R23-billion Safaricom gain as court fight rages

      28 October 2026
      Canal+ takes a knife to DStv prices

      Canal+ takes a knife to DStv prices

      28 October 2026
      South Africa risks return to money-laundering grey list - Busi Mavuso

      South Africa risks return to money-laundering grey list

      28 October 2026
      The hidden cost of owning a folding phone

      The hidden cost of owning a folding phone

      28 October 2026
    • World
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Editor's pick » Apple’s growth story is over

    Apple’s growth story is over

    By Agency Staff3 May 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Even if Apple’s next iPhone proves to be a hit, it may seem like a letdown.

    The company’s stock price and valuation have been on a tear this year as investors look past the company’s transformation into a highly profitable but slow-growing leviathan.

    Shares have climbed 27%, outpacing most of the other technology superpowers, thanks to unshakable optimism about a sales rebound coming from the next versions of the iPhone.

    That’s the hope and this is the reality: Apple’s growth rate is still anaemic by the company’s standards, especially from the iPhone business that generates about two-thirds of its revenue.

    Total revenue rose 4,6% in the three months ended 1 April from a year earlier, Apple disclosed on Tuesday. That’s amazing for a company of Apple’s size, but not the impossible-to-believe growth machine of past years. The number of iPhones sold dipped 0,8%. That’s not good.

    The belief is no matter what happens in Apple’s business in the next few months, it will be a prelude to a pickup in sales from a drastic makeover coming to Apple’s product line-up for the 10th anniversary of the iPhone. But a lot can go wrong with the hopes for an iPhone sales comeback starting in late 2017. People are opting to hold onto their existing smartphones for longer, and a higher percentage of people buying iPhones in the US have been opting for older or cheaper models than they did in the past.

    China is expected to be the biggest spot of iPhone sales growth, but a purchase spike there is no sure thing, either. Compared with the cycle of blockbuster iPhone sales in China starting in late 2014, Apple has more competition now from local companies that also sell feature-rich smartphones. Apple’s revenue from “greater China” — China, Hong Kong and Taiwan — fell for the fifth consecutive quarter. That’s not a great setup for a China revival.

    And there’s a risk that hopes of an iPhone growth rebound have gone too far. For the first time in years, Apple’s stock no longer looks like a bargain. The company’s multiple of forward earnings is the highest it has been since late 2014 and early 2015, when it was clear that the much-hyped debut of Apple’s first larger-screen phone models were a surefire hit.

    It’s hard to imagine a repeat of that iPhone 6 sales bounce, and indeed even the most optimistic Apple loyalists are not expecting a return to anything like that growth tear. In Apple’s 2015 fiscal year, the first full year of iPhone 6 sales, the number of iPhones sold climbed by 62m, or 37%. On average, analysts who track Apple are expecting iPhone sales to increase by about 19m units, or a 9% gain, in the fiscal year that will end in September 2018, according to a UBS analysis of Wall Street estimates.

    The good news for Apple is it doesn’t have to persuade many of its loyalists to trade up to newer models. About 500m-600m iPhones are out there in the world, according to Mizuho estimates. If just 4% of those iPhone owners opt for a new model, that translates into at least 20m new phones sold. The company is also finding ways to squeeze the iPhone sales price even higher, which can help Apple’s bottom line even as it becomes more difficult to persuade more people to pony up for a new model.

    The best advice, though, is to get used to Apple’s less-turbocharged future. The iPhone has run out of growth, and it’s not clear that driverless cars, streaming videos or anything else can fully pick up the slack. Still, Apple generates more profits than any other company, and it is swimming in cash. The company said on Tuesday that it was on track to return $300bn in cash to stockholders by the end of March 2019. Even with the recent stock run-up, Apple barely trades like a growth stock.

    That is more than fine. But don’t let hopes of a mythic return to anything like the good old days obscure the reality of a bright and shiny Apple.  — (c) 2017 Bloomberg LP

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Apple
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleZuma leaves opposition in catch-22
    Next Article Apple reports decline in iPhone sales

    Related Posts

    The hidden cost of owning a folding phone

    The hidden cost of owning a folding phone

    28 October 2026
    Apple's foldable iPhone Duo goes on sale in South Africa - John Ternus

    Apple’s foldable iPhone Duo goes on sale in South Africa

    23 October 2026
    The R77 000 iPhone has arrived in South Africa

    The R77 000 iPhone has arrived in South Africa

    16 October 2026
    Company News

    The key to AI search visibility is human attention: media agency Connect

    28 October 2026
    Why customers still feel unheard when automation works exactly as designed - CallMiner

    Why customers still feel unheard when automation works exactly as designed

    28 October 2026
    Telviva earns ISO/IEC 27001:2022 certification for information security - Antony Russell

    Telviva earns ISO/IEC 27001:2022 certification for information security

    27 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    South Africa's 3G networks could go dark within two years - Dejan Kastelic

    South Africa’s 3G networks could go dark within two years

    28 October 2026
    Vodacom books R23-billion Safaricom gain as court fight rages

    Vodacom books R23-billion Safaricom gain as court fight rages

    28 October 2026
    Canal+ takes a knife to DStv prices

    Canal+ takes a knife to DStv prices

    28 October 2026
    South Africa risks return to money-laundering grey list - Busi Mavuso

    South Africa risks return to money-laundering grey list

    28 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter