Menu
Apple reports second straight quarter of declining iPhone sales

Apple reports second straight quarter of declining iPhone sales

People are buying fewer iPhones, iPads and Macs

Apple has reported its second straight quarter of falling iPhone sales, hit by stiff competition in China and the ongoing slowdown in the worldwide smartphone market.

The company sold 40.4 million iPhones from April to June, down from 47.5 million in the same quarter last year, Apple announced Tuesday.

Revenue for the quarter, the third of its fiscal year, was $42.4 billion, down 17 percent from $49.6 billion a year earlier. Its net profit fell 27 percent to $7.8 billion.

160726 apple iphone 2016 q3 sales IDGNS

While the iPhone was an obvious low point, sales were down across all of Apple's main device lineups. The company sold almost 10 million iPads and more than 4.2 million Macs, compared to almost 11 million iPads and 4.8 million Macs last year. Even the company's "other revenue" segment, which includes the iPod, Beats headphones and Apple Watch, saw declining revenue.

Apple's strategy of focusing on selling high-end professional tablets may be paying off, however. While iPad unit shipments fell, revenue from those products rose sequentially and year over year.

Apple made almost $4.9 billion from the iPad during its fiscal third quarter, compared to roughly $4.5 billion during the same period in 2015.

Another small bright spot was the revenue Apple gained from its services businesses, including sales from the iOS App Store, Apple Music and the iTunes Store.

Those businesses generated $5.98 billion in revenue, up from $5.03 billion in the year-ago quarter. Still, revenue from those services was down sequentially, compared to $5.99 billion in Apple's fiscal second quarter.

Despite the slower sales overall, Apple’s profit of $1.42 per share beat the modest forecast of Wall Street analysts, causing its stock price to climb in after hours trading. It’s shares on the Nasdaq were up nearly 7 percent at the time of this report, at $103.15.

Apple is expected to release a new version of its smartphone in December, though there are conflicting reports about what it will be called and what it will be capable of.

In the past, these releases have reinvigorated iPhone sales, especially as users reach two years after they purchased their previous phone.

Sales of the iPhone saw a massive jump in 2015, following Apple's release of the iPhone 6. Maybe lightning can strike twice.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Apple

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments