Apple revenues fall 15%, as iPhone, China sales drop

ISLAMABAD ( MEDIA REPORT )
Apple reported revenues of USD 42.2 billion for its fiscal third quarter to June, down from USD 49.6 billion a year ago but towards the high end of its outlook of USD 41-43 billion. The company’s gross margin dipped to 38 percent from 39.7 percent in the year-earlier period, also coming in at the high end of expectations. Net profit fell to USD 7.8 billion or USD 1.42 per share, from USD 10.7 billion or USD 1.85 per share, while Apple maintained its quarterly dividend at 57 cents a share.
Apple CEO Tim cook said the results “reflect stronger customer demand and business performance than anticipated at the start of the quarter” and a successful launch of the iphone SE. The launch of the cheaper iPhone led to a 23 percent year-on-year drop in revenues from smartphones to USD 24.0 billion, on a 15 percent fall in unit sales to 40.4 million. Compared to the previous quarter, iPhone revenues fell 27 percent and unit sales were down 21 percent.
The iPad also showed a drop in unit sales, both on an annual and sequential basis, but grew revenues 7 percent year-on-year to USD 4.9 billion thanks to the high-end iPad Pro. Mac computer sales were up compared to the previous quarter but fell year-on-year by 9 percent to 4.25 million, or revenue of USD 5.2 billion. Apple said it also had another record quarter for service revenue, which rose 19 percent year-on-year to nearly USD 6 billion.
The fall in revenue was the strongest in China, down 33 percent year-on-year and 29 percent less than in the previous quarter, at USD 8.8 billion. For the September quarter, Apple forecast a further drop in sales to USD 45.5-47.5 billion and a gross margin of 37.5-38 percent, compared to revenue of USD 51.5 billion a year ago and a margin of 39.9 percent.