Apple has reported a decline in iPhone sales for the first time, forcing down quarterly revenues and increasing pressure on the company.
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With iPhones the main driver of sales for the company, revenue fell on a year-to-year basis for the first time since 2003: United States dollars 50.6 billion from USD 58 billion a year earlier.
The broadcaster’s Dave Lee adds that the company needs “the next blockbuster category to come along” – something entirely new to capture the attention of tech buyers in the way the first iPhone did in 2007.
A new iPhone model is expected to be released this fall, but the Los Angeles Times said analysts are concerned that, like last year’s iPhone 6s, “the newest model won’t be radically different from its predecessors, which could keep prospective buyers on the sidelines”.
“Our results reflect excellent execution by our team in the face of ongoing macroeconomic headwinds in much of the world, and hard year-over-year comparisons”, said Apple CEO Tim Cook, during the company’s quarterly results call.
Vikki Blake is a very jumpy survival horror survivalist. Profits were down even further, with the $10.5 billion significantly down from the $13.6 billion it reported a year ago – a drop of 23 percent.
Despite a number of people calling Greater China a weakening market, Cook is still optimistic over mainland China.
Apple sold 51.2 million iPhones during the quarter, down from 61.2m in the same quarter of 2015.
China is looked at as the most important Apple growth market and until the just ended quarter enjoyed strong quarters as a massive generator of revenue.
The iPad sales continue to decline – they’ve dropped by 19%, from 12.60 million units to 10.25 million units.
For years, analysts have warned the smartphone market is becoming saturated, meaning most people who would want to buy a smartphone already have one.
However, his words did not convince investors, as Apple shares fell more than 6 percent in after hours trading.
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For the fiscal 2016 third quarter, Apple predicts revenue between $41 billion and $43 billion and gross margin between 37.5 percent and 38 percent.
