Apple announced on April 26 its second quarter earnings report, which exhibited the company’s first revenue drop since 2003. Likewise, the iPhone sales volume dropped from about 61 million units to approximately 51.2 million units between the first quarters of 2015 and this year.
Advertisement
Apple CEO Tim Cook took the more optimistic view as he said in a statement that the “team executed extremely well in the face of strong macroeconomic headwinds”.
Mac sales were also down; on this Q2, they sold about 4.03 million computers. On Tuesday, the company reported its first drop on a conference call.
With second-quarter results disappointing investors, Apple shares dropped about 8 percent in after-hour trading.
Apple’s services revenue rose 20% year-on-year to $6 billion for the quarter, excluding the impact of a patent settlement Apple received during the quarter.
Apple reported revenue of $50.6 billion for the quarter, this compares to $58 billion for the same quarter previous year, they also reported net income of $13.6 billion or $2.33 per share.
Earlier this week, the Cupertino-based tech giant, Apple revealed their first-ever decline in iPhone sales.
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.
But if the rumours about the iPhone 7 are to be believed, perhaps it will be the model to pull Apple from its slump. We were concerned that Apple management was trying to canalize Steve Jobs’ disruptive product initiatives by introducing a series of “derivative services” that included Apple Pay, Apple Music and Apple Web TV.
In anticipation of the declining sales of the high-end iPhones last quarter, in March, Apple released its most awaited 4-inch iPhone SE.
But even as some owners say they’re delighted with the Apple Watch, others have voiced disappointment that it doesn’t do more. “Our current shipment situation for Apple is not like the last two years”.
Advertisement
Cook said while India is the third-largest smartphone market in the world, it is dominated by “low-end” smartphones primarily because of the network and the economics due to which “the market potential has not been as great there”.
