Washington: Tech giant Apple announces revenue drop for the first time since 2003 following the plummet in sale of its flagship iPhone, iPad and Mac. Apple posted a quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion ($1.90 per diluted share), compared to revenue of $58 billion and net income of $13.6 billion ($2.33 per diluted share) in the year-ago quarter.
Gross margin was 39.4 percent compared to 40.8 percent in the year-ago quarter while international sales accounted for 67 percent of the quarter’s revenue.
Despite the fall in revenue, Apple CEO Tim Cook said that his team executed extremely well in the face of strong macro-economic 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,” said Cook.
iPhone sales were down year-over-year for the first time since the product’s launch in 2007.
“The company predicts that the year-over-year quarterly decline will continue next quarter,” said a report in arstechnica.com.
“Apple expects it will make between $41 and $43 billion in revenue in the third quarter of fiscal 2016 with profit margins between 37.5 and 38 percent. This is well below the $49.6 billion in revenue that Apple made in Q3 of 2015,” the report added.
iPhone unit sales fell nearly 16 percent from 61.2 million units last year to 51.19 million this year.
Unit sales of the iPad declined almost 19 percent, from 12.60 million units to 10.25 million units.
Unit sales of Mac fell 12 percent from 4.6 million units to 4.03 million units.