Revenue for the third fiscal quarter contracted by 14.6 per cent to $42.36 billion compared with revenue of $49.6 billion in the same period a year ago because of the drop in iPhone sales for the second consecutive quarter.
Advertisement
Apple sold 40.3 million iPhones last quarter, more than the 40.02 million many were expecting.
Apple has announced a 15 percent revenue slide to $42.4 billion for its fiscal third quarter. It pulled in $6 billion in revenue for the June quarter and now makes up 11 per cent of the company’s total revenues, with Cook predicting that it will be “the size of a Fortune 100 company next year”.
It was the second straight quarter of slumping iPhone sales for the company, but the company has seen success with its lower-priced iPhone SE launched earlier this year.
“We had a very successful global launch of iPhone SE and demand outstripped supply throughout the quarter”, Mr. Cook said.
The world’s second largest smartphone market has seen an impressive growth in iPhone sales in recent times. The economic uncertainty led to a slowdown in the sales in China as well as more mature markets as end users are using their present handsets for a long-term.
For the most part, the lone bright spot was a 19 percent increase in Apple’s services business, mostly attributable to a 37 percent revenue spike in App Store revenue.
Apple’s CEO stated yesterday that “The momentum for all four platforms (iOS, macOS, watchOS and tvOS) shows the strong relationship Apple enjoys with customers throughout their day and wherever they go”.
Chief Financial Officer Luca Maestri said online services are increasingly important to Apple, since their financial contribution is increasing.
That includes all of the company’s online services: everything from stores like iTunes and the App Store to people paying for extra iCloud storage.
The business model allows Apple to keep 30 percent of sales from its online App Store passing on 70 percent to the app developer. And since the 1 billionth iPhone sold target has been crushed by the company, we’re certain the executives are now aiming for the 2 billionth hallmark.
Advertisement
The Chinese-based smartphone and electronics maker has been one of a handful of smartphone makers that have caused market-share headaches in China for Apple over the past few years.
