Apple confirms first-ever drop in iPhone sales

Image taken from 9to5 Mac

Shipments down by 10 million from same three month period last year, with total revenue also falling by 13 per cent

Apple has confirmed that iPhone sales fell for the first time on an annual basis in the three months ending March 26, down annually from 61.17 million to 51.19 million.

Revenue on iPhone sales decreased as a result of the unit sales drop by 18 per cent to $32.86 billion.

In a conference call with analysts on January 27 to discuss its Q1 financial results, Apple CEO warned of a slump after the manufacturer reported its slowest growth rate in the device’s nine-year history.

Total revenue was also down from 12 months ago from $58 billion to $55.6 billion – the first time this has fallen since 2003. However, this was in line with guidance Apple posted in its previous quarter financial results.

iPad sales continued to fall, down 19 per cent to 10.25 million units, with revenue on the tablets falling by the same margin to $4.41 billion.

Positives elsewhere

Apple Watch sales weren’t revealed and again included in the ‘Other Products’ category, which also includes Apple TV, Beats products, iPod and Apple-branded and third party accessories.

Revenue on these products rose by 30 per cent to $2.189 billion. Income for Apple’s ‘Services’ category, which includes Apple Pay, was up by a fifth to $5.99 billion.

For its third quarter, Apple is forecasting revenue to be between $41 billion and $43 billion, which would be down from the $49.6 billion figure it posted for the same three month period last year.

Cook said: “Our team executed very well in the face of strong macroeconomic headwinds. We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”