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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Apple

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Blair Hanley Frank

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?