Apple’s quarterly earnings drop for the first time since 2003

Apple released its last quarterly earnings on Tuesday. Its annual revenue has decreased for the first time since 2003 with the result of a decline in quarterly iPhone sales.


It officially revealed $50.6 billion in revenue to its investors on Tuesday, with a 12% decrease.

The statistics showed that Apple made 51.2 million sets for iPhone sales, with a 16% decrease from 61.2 million sold during 2015’s second fiscal quarter.

Apple sold 10.3 million iPad in the same period last year, while it encountered a 19% drop this year. 4.03 million Macs were sold and with $5.11 billion in revenue in last quarter. The subscription steaming service, Apple Music has obtained more than 13 million subcribed members so far.

The drive market for Appler performance growth is Chinese market in recent year. It realized $12.48 billion in revenue last quarter in Chinese market, with a 26% drop.

Even though its revenue declined, it still brought Apple $ 10.5 billion in profits for the quarter. It could still consider as a great success among many tech firms.

Apple aims at making $41 billion and $43 billion in revenues for its current fiscal quarter which is under the average evaluation of analyst at $47.3 billion.

Besides the sales decline, Apple also faces the embarrassed situation: profitability decline. Its current gross profit margin keeps at 39.4%, however, it might decrease to 37.5% 38% for next quarter.

Apple faces much challenge to stimulate more sales and gain more profits.

MS share price declined by 5 % after market closed when it released Q3 Earnings

Microsoft announced the latest earnings report by 31st March. Even though its last quarterly performance basically met its expectation, the investors felt disappointed to its next quarterly expectation which led to share price decline.

Its revenue growth keeps stable. It is hard to impress its investors now. Its next quarterly performance expectation disappointed the investors. Microsoft did adjust its tax cost this quarter which lessened the profit.

MS EPS is 62 cents in Q3, according to the non-GAAP which is under the Wall Street prediction. While its EPS is 47 cents according to the GAAP in Q3.

Its Q3 revenue is $22.1 billion based on Non-GAAP which is even with Wall Street’s prediction. While its Q3 revenue is $20.5 billion in accordance with GAAP.

Microsoft predicted that its next quarterly revenue will between $21.7 billion and $22.4 billion which is fewer than Wall Street’s expectation at $23.1 billion. Microsoft’s share declined by 5% after market closed due to its earnings report.

There were not excellent performance increase last year among its three featured products. The revenue of Azure and Intelligent Cloud of Windows Server reached $6.1 billion, increased by 3% yoy. While the revenue growth rate of More Personal Computing including Windows 10 and Productivity & Business Services including Office was 1%.

One of the reason why More Personal Computing department revenue decline was its pattern licensing income decreased by 26%.

Instagram revenue is supposed to reach over $ 3 billion

Credit Suisse analysts predicted that Instagram has potentiality to obtain more than $ 3 billion revenue this year. Its revenue scale will be three times as much as it did when Facebook acquired it with $ 1 billion in 2012.


Stephen Ju stated in the report:” we currently predict that the Q1 revenue of Instagram will reach $572.5 million and its annual revenue will reach $ 3.2 billion.”

They assumed that Instagram and subscribed videos will be the more important elements for Facebook in mobile and pc ad revenues. They claimed:” The total revenue of Facebook in Q1 will reach $ 5.24 billion, among $ 573 million from Instagram and $ 260 million from subscribed videos.”

The team and Stephen Ju claimed there will be more commercial ads transferred to Instagram in the future. Instagram is the platform that allows few giant advertisers to purchase video ads so far. The duration of video Ads is 60 seconds maximum to help those giants to transfer their offline ads to Instagram. According to Instagram’s current policy, the video content that users send must be in 15 seconds.

It only has 30 million users when Facebook acquired Instagram. By September, 2015, its monthly active users increased to 400 million. Its users growth was mainly from oversea markets.

Its recent blog stated that Instagram users become international. Over 75% of users live in United States. Among the 100 million new users, half of them live in Asia and Europe. The growth run faster in Brazil, Japan and Indonesia.

Apparently, Instagram faces challenge as well. It released a new app for image sorting recently. If it doesn’t work, users possibly choose Snapchat instead.


Facebook is the leader in social networking filed. But there are also rivals aiming to obtain more users share.

Bloomberg reported on Monday that fewer users posted their personal information on Facebook now. The more Facebook users made friends on this platform, the fewer are willing to share their personal life there. In the meanwhile, they prefer to share their personal life on Snapchat or Facebook subsidiary Instagram.

The Information reporter Amir Efrati quoted from Facebook internal data that the share of Facebook users posted personal
details there declined 21 % from 2014 to 2015. Last Week, Mark Zuckerberg stressed the new application to share personal
information on Facebook.

Even though Facebook has over one billion users, only they share unique experience on it and attract more friends can show its
worth. The reason why Facebook launched the live video feature last week was to attract more users to share their experience.

Speaking of Snapchat, this app attracts more users in age 18-24 and age 25-34. According to the statistics reported by ComScore, Snapchat had great users share increase between these two groups from 2013 to 2015.

Even though Snapchat obtains fewer users than Facebook, more young people would like to share their snapshots on it instead of
the latter. They have more common friends and families on Facebook account.

Snapchat allows users to public their video films or photos. Users can also send them to their friends. Users can totally control their photos. It is more convenient to share daily details on Snapchat.

Facebook launched Facebook Live that supports live videos

Facebook just launched a Facebook Live feature. It is amazing that users can watch the live video on Facebook now.


Facebook Live is not just broadcasting the videos. It has a picture that users can search videos from all over the world. The new feature allows users to use the filter when playing videos. Facebook Live combines with Facebook Reactions.

Reactions is biggest product that Facebook released in the past few years. However, most of flaring features of Reactions are similar with other websites’. Speaking of it Live video, Facebook also replicated or imitated the live video features from Periscope, Meerkate and other websites.

Mark Zuckerberg explained the differences between Facebook Live and Periscope live video when he was interviewed by Buzzfeed News last week.

His answer was simple, Facebook has audience while Periscope doesn’t. It offers convenience for users to search friends though they just wish to share videos with them.

Facebook and Periscope are close functionally, but the former is mot popular and welcome by the public. Its applications are easy accepted without promotion.

To use this new feature, users can also set live videos as their profile pictures. There will be more moving profile pictures instead of the static ones then.

However, not all video formats will be supported. Fortunately, users can transform the static profile pictures into the dynamic images through some third-party apps including Vine, MSQRD, Boomerang and so on.

If you are interested, please draw attention to learn more Facebook news concerning the new apps and features.

Free to access to South China Morning Post

South China Morning Post Publishers Limited announced early today South China Morning Post was free to access web edition and  mobile platform from 6 pm on April 5th, 2016.


This statement was made after 4 months since Alibaba acquired South China Morning Post. Alibaba announced last December that it made final agreement with South China Morning Post Group and acquired its South China Morning Post and other media assets, including South China Morning Post newspaper and its web edition, magazine and outdoor media business.

Besides the announcement of free access, South China Morning Post released new edition for mobile app. The new app adds many features, such as search, personalized settings, quicker loading rate, social networking links and more convenient navigation.

So far, its new app has been introduced to App Store, Goolge Play and Windows Mobile.

It is worth noting that only offers free access on South China Morning Post’s web edition and mobile edition. The newspaper of South China Morning Post and ePaper are still required to subscribe.

Alibaba executive vice president Mr Cai cliamed last December, the company would cancel the subscription mode for South China Morning Post so that more readers could access to more news and information online and mobile devices.

He added:”It is inconvenient for Pay Wall though people are willing to pay for the news. Why not offer chance for those who use mobile devices or cellphones to access the news.”

This post was established in 1903. It was initially called South Qing Morning Post and not changed until by 1913. It is the best selling English post in Hong Kong now.

Chief editor Sammy Tam said the cancellation of Pay Wall paves the way for South China Morning Post to obtain more readers.