News

Apple announces first quarterly revenue reduction since 2003

The first reduction in quarterly revenues for over a decade has been revealed in Apples Q2 results.

Apple released financial results for the second quarter of 2016, recording quarterly revenue of $50.6bn and quarterly net income of $10.5bn, $1.90 per share (1).

The report marks the end of Apple’s 51 consecutive quarters of uninterrupted sales growth. The 13% decrease in quarterly sales figures is largely attributed to a fall in iPhone upgrades with shipments falling 16%, 10m fewer than Q2 2015 (2).

Another significant impact on Apple’s results was reduced demand in China, where sales saw a 26% reduction compared to a year ago. Strengthening of the dollar also impacted results (3).

Apple CEO Tim Cook said, “Our team executed extremely well in the face of strong macroeconomic headwinds” (1). In January the company warned that it was experiencing its slowest ever increase in iPhone orders (3).

Apple share price fell 8% in after-hours trading. Its shares have fallen close to 20% over the last twelve months.

Whilst growth slowed in hardware sales Tim Cook was, “very happy with the continued strong growth in Revenue from Services” (1).

  1. (1) – Apple Reports Second Quarter Results – Apple.com
  2. (2) – Apple Forecasts Second Sales Drop as iPhone Woes Deepen – Bloomberg
  3. (3) – Apple revenue falls for first time since 2003 – BBC News/li>