Apple sales, profits fall again but a brighter outlook ahead

The company saw lower sales of its most important products, but a turnaround could be coming

Apple recorded its third consecutive quarter of lower revenue as it fought lower demand for the iPhone and tough competition from lower-priced competitors.

Revenue in the quarter, between July and September, was US $46.9 billion, down 9 percent on the same period last year and exactly in line with analyst estimates. Net income came in at $9 billion, down 19 percent, the company said Tuesday.

Apple CEO Tim Cook called the results "strong" and said he was "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."

But amid the falling sales and profits, signs of a turnaround on the horizon.

Apple said the current quarter, which includes the key year-end sales period, will be better than analysts had been predicting. It expects revenue to be between $76 billion and $78 billion. If that comes true, it would also represent a hike in revenue on a year-over-year basis, returning the company back to positive growth.

Apple sold 45.5 million iPhones between July and September, down from the 48 million phones sold during the same period in 2015 and slightly ahead of analyst estimates of 45 million units. Revenue from iPhone sales fell 13 percent.

The quarter included the first two weeks of iPhone 7 sales

After rising for years, iPhone sales began dropping at the beginning of 2016. The phone remains the most popular among consumers, but its share of the market is slowly eroding as smartphone penetration gets higher, customers delay replacing their phones, and a new breed of lower-cost competitors hit the market.

That's especially true in China, where Apple saw massive sales growth last year but has experienced big drops this year. That happened again in the most recent quarter with sales in greater China at $8.8 billion, down 30 percent on the same period last year.

Apple reported a 7 percent year-on-year revenue drops in the Americas while revenue from Europe and Japan rose 3 percent and 10 percent respectively.

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.

Martyn Williams

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?