First fall in sales for 13 years
Apple shares fall as sales of iPhone hit revenue
China was largely blamed for a 13% drop in its second quarter revenue from $58 billion (£40bn) to $50.56bn. Sales in China plunged by 26%.
Sales of the iPhone, which accounts for nearly two thirds of the Silicon Valley giant’s revenue, were down from 18% from 61.2m to 51.2m. Quarterly profit fell from $13.5bn to $10.5bn.
A strong dollar — which is up almost 20% in the last two years against major currencies — has also been to blame for the fall in sales which has also seen fewer iPads sold.
The shares have fallen almost 20% over the last twelve months.
Apple’s chief executive Tim Cook said the company performed well “in the face of strong macroeconomic headwinds” as analysts said the market for smartphones was saturated.
However, the company warned three months ago that the iPhone – the most successful technology product in history – is now in decline.
Investors and consumers are now looking for the next big launch from Apple. The Apple Watchhas is earning about $1bn a quarter, but this is not seen to be the answer.