It would seem that consumers are now slowly losing interest for Apple gadgets, or perhaps they’re just waiting for the upcoming release of a new product line, especially that of a new iPhone, that will come out in September. It has been reported that every one of the company’s major hardware businesses have posted declines in sales within the three month period ending in June. The number of iPhones that have been sold has slid down 15-percent, as compared to the same period over a year ago. Furthermore, the firm’s revenue has dipped by 23-percent as consumers switched towards the cheaper iPhone SE.
Apple Sales Continue on the Decline
Aside from the report about the Apple iPhones, the company also reported a decline in sales for the number of Macs sold as it fell by 11-percent. Furthermore, the number of iPads sold also fell down by 9-percent. As for the sales of its Apple Watch smartwatch, which is the company’s latest product, it has plunged by 55-percent as compared to a year-ago period, as per research firm IDC. This report pertaining to the company’s smartwatch was published by the research firm as the Cupertino, California-based tech firm does not post its smartwatch sales.
While the reports pertaining to Apple’s products look dim, the only bright spot for the company within its third fiscal quarter was in its services division. This includes its iCloud storage business, Apple Pay, and Apple Music. Revenue within this segment has risen by 19-percent towards $6-billion. Furthermore, the tech giant predicted the strong future growth as it markets its services towards the owners of more than one billion owners of its devices.
Overall, the company posted a total revenue of $42.4-billion for the aforementioned period, and this is down by 15-percent as compared to the same quarter back in 2015. Net income was reported to be at $7.8-billion, or $1.42-per-share, which also fell but at 27-percent. However, this was less weakness as compared to the expectations brought about by Wall Street right after the tech firm’s less than satisfactory performance during the last quarter.
Luca Maestri, Chief Financial Officer of Apple, stated that the numbers did not look as bleak as they should. This is because the company held back on shipments towards its retailers, particularly those found in the Chinese regions. This is so that the stores were given the chance to clear out their existing inventory of the company’s products.
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