Published On:October 26, 2016, 12:21 pm
Apple Inc. reported its third consecutive quarter of descending iPhone sales and revenue on Tuesday and the anticipated slender than the required profit margins during the forthcoming holiday season, even though the sales beat the expectation of the analyst.
The tech giant made sales of 45.51 million iPhones in just three months until 24th September, which whipped an average estimate of 44.8 million in September 2015. Apple Inc. also predicted higher sales in the holiday season with the expectation of revenue generation between $76 billion and $78 billion.
The declining iPhone sales have taken a chunky bite out of the Apple’s overall earnings and revenue along with earnings down by a third in Greater China – which is this tech giant’s biggest growth market.
Nevertheless, the iPads and Mac computers’ sales also dropped over the year. The outcome was Apple’s first annual fall in profit and revenue since 2001.
Net income for the first September quarter descended 19% to $US9 billion ($12 billion) down from just above $US11 billion ($14 billion) for the same time in the previous year. Yearly profit for the year 2016 receded from $US53 billion ($69 billion) last year to $US45.6 billion ($59.6 billion).
Even though the overall profit was declining, Apple Chief Executive Tim Cook was optimistic by stating that there has been lucrative response to the newly launched iPhone 7 and he is positive about the sales growth in December.
Mr. Cook mentioned, "We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our services business, where revenue grew 24 per cent to set another all-time record."
The Apple executives said in a conference call that the company stayed upbeat on China, and that they were open to acquirement of any size which has tactical value.
With Apple beginning to focus on unique content, Mr. Cook said that the IT goliath was keeping an eye on the developments of the TV industry. He said, "TV has intense interest with me and many other people here."
Luca Maestri, chief financial officer of Apple Inc. said that it was not possible to know if there was any kind of impact on sales due to the reminiscence of competitor Samsung's Galaxy Note 7 phone. Post the catching fire incidents of the Samsung phones the production was arrested.
Apple Inc. shares dropped 2.6 percent to $US115.10 in post hours trading in the U.S.
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