The CEO seems happy about it as their decline has much been countered by the Services category while they had already expected the declines for this year.
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But there may be more dark clouds on the horizon than Cook is letting on.
Apple is also expected to showcase the second generation of its Apple Watch at company’s annual developer conference in May.
“The iPhone will continue to dominate Apple’s sales and profits for a long time to come”.
Meanwhile, Apple’s revenue fell 13 percent to $50.55 billion.
India is the next China for Apple: Cook said that he believes that India is now at a point where China was in terms of network and market economics seven to ten years ago and the company has great opportunity in the country. For the fiscal third quarter of 2016, Apple forecasts revenue of $41 to $43 billion and gross margins of 37.5 to 38 percent.
Apple shares fell eight per cent in after hours trading.
The Reason: the growth of iPhone sales in United States and China – the technology giant’s two largest markets – slowed as these markets reached saturation forcing the company to turn to India for expanding its market. Globally, things look diffi cult for the world’s most valuable company.
Asked about the iPhone SE, Apple’s Chief Financial Officer Luca Maestri told Reuters: “The situation right now around the world is that we are supply-constrained”.
At present, Most of Apple’s smartphone products are high-end ones but the other suppliers including Samsung Electronics are adding more and more economical smartphones to their lineups.
Apple’s revenue for the quarter included $6 billion from online services, apps and other software, he noted.
Also, its 51.1 million iPhones that got sold during the quarter, down from 61.2 million sold during the same period a year ago. That’s more than twice the number of iPhones sold in the first year after the company introduced its signature smartphone in 2007.
“Mainlanders do not have to travel to Hong Kong to buy iPhones, and Hongkongers have stopped buying them from the Apple Store to resell to our store”, he said. And critics say it hasn’t ignited consumer passions in the way the iPhone became a must-have product. Despite the revenues falling for the first time since 2003, Apple remains upbeat about the performance of the emerging markets when it comes to sales as well as those switching from rival platforms, largely Android. The company is on track to meet its goal of building 25 new stores in China by the end of 2016.
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Cook spilled some beans on their future offering by saying, “The future of Apple is very bright. Well, it’s going to be Christmas Eve for a while”, he cautioned when asked about an Apple vehicle in February.
