Apple revenues fall as iPhone sales dip

Slowing sales in the international markets are likely to be the reason for the fall, particularly in China according to commentators.

Apple-Index

Apple’s revenue has dropped for the first time in 13 years, with the company’s second quarter results down $8bn (£5.46bn) on last year.

The iPhone, which is the company’s biggest seller, accounted for 16% less sales than at this point in 2015.

The results still reveal $50.6bn (£34.7bn) in revenue, compared with $58bn (£39.7bn) the same time last year.

Overall the figures still look robust with gross margin 39.4% compared to 40.8% in the year-ago quarter.

The international picture

While international sales accounted for 67% of this quarter’s revenue, it is likely that it is these same international markets which are behind the dip.

Many commentators are citing Greater China as one of the main reasons for the stalling of sales.

According to Bloomberg the Greater China region (including Hong Kong and Taiwan) is understood to have experienced a 26% fall in sales compared with the same time last year.

“Strong macroeconomic headwinds”

Apple’s chief executive Tim Cook, who remains upbeat, says: “Our team executed extremely well in the face of strong macroeconomic headwinds.

“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.”

An iPhone 7 is anticipated by the end of the year (probably September), and rumours are circulating that there could be many changes including water resistance, no front button, no headphone jack (but Bluetooth headphone connectivity), more power and slimmer build.

Hide Comments (1)Show Comments (1)
Comments
  • Alex Brooks April 28, 2016 at 3:26 pm

    I personally think the iPhone and iOS are getting quite tired/boring – I’ve recently jumped ship to Samsung and Android and am really glad I did. I think the iPhone is overdue a complete overhaul and Apple need to start being ahead of the game again.

  • Post a comment

Latest articles

The best talks to catch at D&AD Festival 2018

Returning to East London’s Old Truman Brewery, this year’s D&AD Festival boasts a line-up of speakers that includes graphic designer Craig Oldham and Pentagram’s Naresh Ramchandani. Here, we pick out