Bloomberg reported that Apple predicted its iPhone sales in Q2 2016 would decline for the time since 2003. The reason for this prediction is that the smartphone market tends to be saturation. The exploration of Chinese market could not make up its former growing speed.

Apple assumed its revenue for Q2 might come between $50 billion and $53 billion. It will be the first time that Apple suffers revenue decline since 2003. Such prediction is under the analyst expectation at $55 billion.

Apple sales volume and shipments did not meet the expectation in Q1 2016. It intensifies the concern for iPhone sales volume has reached the peak which led to the decline of 20% of Apple share in the past 6 months.

Even though it did not meet the expectation, Apple could still benefit a lot from iPhone sales performance. But it will be hard to make from from the popularization of worldwide smartphone process. Its rival Samsung announced its financial report recently, only to find it did not meet the expectation either.

Apple CEO Tim Cook encourages to explore Chinese market, introducing Apple Watch and other service to China. However, it relies much on iPhone sales which led to affect of needs decline.

Mizuho Securities USA Abhey Lamba claimed that Apple owns other products and has ability to promote them. However, it is hard to make up the mistake left by iPhone slow growth.

Fort Pitt Capital Group Kim Forrest assumed Apple faces two problems: whether the need of buying iPhone declines, whether the consumers purchase iPhone with the same speed that did in China.