Now talking about money, their revenues dropped from $58 billion to this year’s $50.6 billion, a drop of about 13 percent compared to Q2 2015. In China, which is Apple’s biggest market, sales were down 11% in today’s dollars and down 7% in constant currency. Total sales fell for the first time since 2003, while the iPhone suffered its first-ever quarterly decline.
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Apple just announced its worst quarter in over a decade.
Not only iPhone sales went down, this also involves the iPad, where they sold only about 10.3 million iPads this quarter while on past year they sold 12.6 million. Revenue from services, which includes its various Internet services and Apple Pay, grew to $5.99 billion from $5 billion.CEO Tim Cook dismissed any panic, telling the Wall Street Journal, “It’s a tough bar to hurdle, but it doesn’t change the future”.
Meanwhile, Apple said 51.2 million iPhones were sold, down from the 61.2 million units in the same period past year. While iPhone 6S upgrades were outpacing those when the iPhone 5S launched, it hasn’t been able to match the “accelerated” upgrade cycle the company saw when it launched the iPhone 6 in 2014.
Apple’s “dazzling 13-year run of quarterly revenue growth ended on Tuesday – a casualty of Apple’s already huge size, weakness in key global markets like China and the lack of another hot product to pry open the wallets of customers”, says Vindu Goel of The New York Times.
While the company released the Apple Watch last summer, those sales still pale in comparison with Apple’s more traditional products.
Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The 5C was Apple’s last attempt to produce a cheaper phone, back in 2013. “They’re all trying to raise the average selling price, and that will bleed into Apple’s sales flow”.
Both revenues and profits were below analysts’ expectations, who estimated that Apple would post earnings of $2 per share and revenues of $51.97 billion.
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Analysts and Apple shareholders are holding out hope that the iPhone 7 can produce the same kind of boost that the iPhone 6 gave Apple.
