In the last quarter, Apple registered a 16.3% drop in iPhone sales – the first fall since the device was launched nine years ago.
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Apple has reported its financial results for its fiscal 2016 third quarter ended June 25, 2016, revealing a dip in revenues on the same quarter one year ago. Apple reported a profit of $7.8 billion on $42.4 billion in revenue for the third quarter, which is better than the $42 billion estimated. Revenue fell 11 percent year over year in the Americas and 7 percent year over year in Europe, and it plummeted a whopping 33 percent in greater China.
The company sold 40.4 million units of its iconic handset, down 15 percent year over year and 21 percent from the previous quarter.
It wasn’t all doom and gloom however with Apple’s services unit, which includes Apple Music and iCloud reporting revenue of $5.97 billion, up 19 percent year-on-year, while Apple’s App Store is said to have had its highest revenue ever.
The firm’s WWDC developer conference in June saw the next version of iOS, Apple’s software for the iPhone and iPad, demonstrated for the first time before launching this autumn. CEO Tim Cook said that growth in iPad revenue was mostly from the global rollout of it latest 9.7 inch iPad Pro model.
Apple sold more than 40 million phones, 10 million iPads, and over four million Macs during the quarter.
The company does not break out sales of the Apple Watch, but third party researchers have said sales dropped substantially – IDC said that sales fell 55% in the a year ago. Apple’s research and development fund increased 26 percent to $2.6 billion in Q3. But an iPhone sales bump isn’t likely until Apple releases successors to the 6S and 6S plus later this year. Apple’s revenue also beat analyst estimates, coming in at $42.36 billion while the estimates were pegged at $42.09 billion. Shares rose 7 per cent to $103.47 in after-hours trade following publication of results. The company said it returned over $13 billion to investors through share repurchases and dividends, has completed nearly $177 billion of its $250 billion capital return program.
Android, by comparison, will see its share of U.S. smartphone users rise slightly to 52.0% up from, 51.7% the previous year.
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The company dropped its fiscal third quarter earnings today, and the news was not good-at least in the weird world of Apple’s astronomical numbers.
