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 PC World newsletter!

Error: Please check your email address.

Tags Apple

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?