Apple Profit Drops As iPhone Sales Slowdown

Apple Profit Drops As iPhone Sales Slowdown

Apple has posted a decline in both profits and revenue in the second quarter, as sales of its main cash cow – the iPhone – fell 17 percent, stoking concerns of smartphone saturation.

Despite sales of Apple’s iPhones falling at their steepest-ever rate, CEO Tim Cook remained optimistic and said sales were stronger towards the end of March. This included China where Apple recently cut iPhone prices to boost demand.

Advertisement

Profit fall

So how bad were the results at Apple? Well it is important to note that the firm is still hugely profitable, but there has been a noticeable decline.

For the second quarter ending 30 March, Apple posted a net profit down 16.3 percent to $11.6bn.

This was down from the $13.8bn profit Apple recorded in the same quarter a year earlier.

There was equally ‘bad’ news on the revenue side after sales also fell to $58bn in the quarter, down from $61.1bn a year earlier.

Advertisement

This revenue was below the $57.37bn that analysts had been expecting, Reuters reported.

It is clear that Apple’s performance has been dented by slowing sales of its iPhone products, which remains the firm’s principle money maker.

Indeed, sales of iPhones account for more than half of all revenue, but it fell 17 percent in the fiscal second quarter from a year earlier and slightly missed analyst expectations.

Apple reported that iPhone revenues were $31bn, slightly below analyst estimates of $31.1bn.

Advertisement

Looking forward

Yet there was little sign that Apple’s management are overly concerned at the decline.

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” said Tim Cook.

“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services,” said Cook. “We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”

Looking forward Apple said it expects revenue between $52.5bn and $54.5bn for the current quarter ending in June. That projection pleased analysts who were expecting $51.93bn.

And in a sign of how rich Apple actually is (it has nearly $80 billion in cash and other securities), the firm announced a new $75 billion share buyback.

Top Tips to Protect Your Business Against Social Media Mistakes

Earlier this week Apple pulled a number of parental control apps from its App Store over privacy and security concerns.

The firm issued a rare public rebuttal to a media report, when it insisted the move was nothing to do with removing competing apps against its Screen Time feature.

#apple #Business Tech News #smartphones

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

back to top

Popular Tech News

A quarter of UK adults feel uneasy about using online sharing services

A quarter of UK adults feel uneasy about using online sharing services

12 May, 2019

AI-powered trusted identity as a service provider Jumio has released new details from its Global Trust and Safety Survey...

UK broadband, TV and phone customers must be informed when contract is ending

UK broadband, TV and phone customers must be informed when contract is ending

15 May, 2019

A new Ofcom ruling will go into effect on 1st July, ensuring that phone, broadband and TV companies are more open abou...

UK is 'not a surveillance state' says minister defending police face recognition tech

UK is 'not a surveillance state' says minister defending police face recognition tech

06 May, 2019

Opposition MPs have debated whether automated facial recognition technology should be used at all in the UK, after a p...

Apple Gives Free MacBook Repairs For Keyboard Flaw

Apple Gives Free MacBook Repairs For Keyboard Flaw

23 May, 2019

Apple has redesigned its MacBook keyboards after the firm admitted that previous models contained a design flaw. ...

EE To Launch UK 5G Network Next Week

EE To Launch UK 5G Network Next Week

22 May, 2019

EE will become the first UK operator to launch a 5G network in the UK in six UK cities at the end of this month. ...

Apple plans to make online ads more private

Apple plans to make online ads more private

22 May, 2019

For years, the web has been largely free thanks to online ads. The problem is that nobody likes them. When they’re n...

ExpressVPN UK Review: The best VPN service around

ExpressVPN UK Review: The best VPN service around

11 May, 2019

What impressed us about ExpressVPN the most, is that it has gone the extra mile to provide a great user experience. ...

Nintendo Labo VR Kit UK Review: Virtual reality fun for your Switch

Nintendo Labo VR Kit UK Review: Virtual reality fun for your Switch

10 May, 2019

A year after the Nintendo’s buildable Labo kits was intorduced came a wide range of Labo experiences to pick and cho...

Windows 10 Fix can't be restored after you install an update

Windows 10 Fix can't be restored after you install an update

19 May, 2019

Windows 10 administrators who install Windows 10 on a computer may receive a stop error when they attempt to restore t...

Categories

Home Tech Reviews UK

Mobile Tech Reviews UK

×

Sign up to keep in touch!

Be the first to hear th latest Cyber and Tech News straight to your mailbox.

Check out our Privacy Policy & Terms of use
You can unsubscribe from email list at any time