Why Apple Is In For A 'Tough' 2016

Jay Yarow, executive editor of Business Insider, sees things as not "looking great" for Apple Inc. AAPL in the near term.

According to Yarrow, iPhone sales could go negative for the first time in history. "iPad sales are shrinking, and show no sign of improving. The Apple Watch is not the blockbuster people thought it was going to be," he noted.

Yarow believes Apple TV is "OK, but nothing revolutionary." He also sees Apple's software and services such as Apple Music, Maps, Health, Photos as just "OK."

As measured by market value, Apple is the world's largest company. Apple has $206 billion in cash on hand. The company had $13.5 billion in cash flow last quarter.

Apple is expected to achieve $77 billion in sales this quarter.

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"So, even a "tough" year for Apple will be a great year that would be a record breaker for any other company, as measured by profits and revenue," Yarrow commented.

The company's revenue was up 4 percent last quarter, however, only 8 percent accounted for Apple's revenue.

Another negative is that the PC industry overall is in a decline. Worldwide PC shipments totaled 68.4 million units in the second quarter of 2015, a 9.5 percent decline from the second quarter of 2014, according to preliminary results by Gartner.

The company's shares have declined 17.65 percent since May 27. Apple's shares have underperformed the S&P 500 by 15.52 percent.