“The future is very bright”, CEO Tim Cook told The Wall Street Journal, stressing that Apple performed well in the face of strong macroeconomic headwinds such as a strong dollar and hard economic conditions.
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Apple remains positive with its CEO Tim Cook saying the company is happy with the persistent strong development in income through their services. Now talking about money, their revenues dropped from $58 billion to this year’s $50.6 billion, a drop of about 13 percent compared to Q2 2015.
In the quarter ended 26th March, Apple recorded 51m iPhone sales, which is a significant drop of 10m on the same period a year before.
The decline in the company’s revenue was down to a decline in iPhone sales, this is the first time that iPhone sales have declined since the original iPhone was launched back in 2007.
“This too shall pass”, Cook said on an analyst conference call, adding that Apple was confident “that the market, and particularly us, will grow again”.
Apple reported iPhone shipments of about 50 million, down from 61 million a year ago. Therefore, many iPhone buyers switched to other smartphones like Android, along well as first-time buyers.
The iPhone and iPad were still several years away from release and the Apple Watch would be unveiled more than a decade later.
Profit for the quarter was $10.5bn, representing a 23% decline compared with the same period in 2015.
That decline dropped the market value of Apple by more than $40 billion – or about the entire market value of streaming firm, Netflix.
Its shares fell about 8 per cent, dropping below $100 for the first time since February.
Many commentators are citing Greater China as one of the main reasons for the stalling of sales. The investors were not that cheerful even with an increase in the company’s share buyback and dividend program as well as well the bumper revenue generated from services.
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A report said this drop in sales shouldn’t come as a surprise for those who are aware that the market is close to, if not already at peak iPhone levels.
