iPhone maker Apple today reported 15 percent drop in revenue in its third quarter ended June 25, 2016.
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Apple said its revenue dropped to $42.36 billion from last year’s $49.61 billion, its second consecutive year-over-year quarterly sales drop.
The company sold 40.4 million iPhones from April to June, down from 47.5 million in the same quarter previous year, Apple announced Tuesday. However, Apple did report good news for its iPad Pro, which has led to the company generating more profit from its iPad market despite the fewer sales, raking in $4.9 billion compared to last year’s $4.4 billion.
Cook added that the launch of the iPhone SE was successful, and that the company was thrilled by the response of both customers and developers on the software and services that were unveiled at Apple’s annual WWDC, which was held in June.
This quarter, Apple was able to sell 40.40 million iPhones, which is lower than last year’s 47.53 million count. iPad sales also dropped from 10.93 million to 9.95 million, along with Mac sales; from 4.80 million to 4.25 million. But in this year’s fiscal second quarter, iPhone sales fell 18 percent to 51.2 million units from 61.2 million in the same quarter in 2015. That segment produced almost $6 billion in sales – more than Apple pulled in from quarterly sales of either iPads or Macs. “Most of our terrific Services performance during the quarter was fueled by our active installed base of devices, with installed base-related purchases of $10.3bn, accelerating to 29 per cent growth year-on-year”.
Fiscal third-quarter revenue fell 15 per cent to $42.4 billion.
Despite poor earnings result by Apple in current quarter ending September, the results are even better what the fears of Wall Street were, and it ultimately push the stock 6% up in afterhours over that optimism.
Looking forward to the fourth quarter, Apple expects revenue between $45.5 billion and $47.5 billion.
In after hours trading, Apple shares grew more than 6 percent.
But services revenue, which includes Internet Services, AppleCare, Apple Pay, licensing and other services, was up 19% to $5.97bn.
India continues to play an important role for Apple, and yet again Cook touted the country as one of the fastest growing markets. iPhone sales in India continued with their “double-digit” growth, and Apple also reported “healthy growth” in revenues.
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Figures released today show that sales in China fell 33.1 percent, compared with a 112.4 percent rise in the same quarter past year.
