Apple Revenue Slides In Q2, iPhone Sales Drop
Apple has seen its second quarter revenue slide 13 per cent year-on-year, with iPhone sales declining.
As reported by The Wall Street Journal, this is Apple’s first quarterly decline in revenue in 13 years, with the iPhone recording its first ever decline in sales since its introduction in 2007.
Apple’s revenue for the quarter was US$50.56 billion, down from US$58.01 billion year-on-year.
iPhone unit sales of 51.193 million were down 16 per cent from 61.17 million year-on-year. In revenue terms, the iPhone accounted for US$32.86 billion for the quarter, down 18 per cent year-on-year.
Apple launched its 4.7” iPhone 6s and 5.5” iPhone 6s Plus in September last year, while introducing its 4” iPhone SE at the end of March this year. Apple’s second quarter results do not include sales figures for the iPhone SE.
The smartphone market is becoming increasingly competitive, with Gartner forecasting that, for the first time, global smartphone sales are set to post single digit yearly growth this year.
iPad unit sales of 10.251 million were down 19 per cent year-on-year, with iPad revenue of US$4.41 billion down 19 per cent. Mac unit sales of 4.034 million were down 12 per cent year-on-year, with Mac revenue of US$5.11 billion down 9 per cent.
Services revenue of US$5.99 billion was up 20 per cent year-on-year.
Apple’s net income for the quarter, meanwhile, came in at US$10.5 billion, down from US$13.6 billion year-on-year.
As reported by the WSJ, Apple shares had fallen 8 per cent in after hours trading on Tuesday.
“Our team executed extremely well in the face of strong macroeconomic headwinds,” Apple CEO Tim Cook stated upon release of the results.
“We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”
Apple has provided guidance for its third quarter of revenue between US$41 billion and US$43 billion.