For the first time, the tech giant Apple saw a decrease in sales and revenue in thirteen years since the introduction of the iPhone in 2007. On Tuesday, the company reported its first drop on a conference call.
Sales dropped in the second quarter of the financial year to $50.56billion (£34.39billion). The figure was 58 billion dollars a year earlier. The decrease is mainly due to lower sales of the iPhone. In this quarter, there were 10 million fewer sales, than the same period last year. The company sold 51.2 million iPhones during the quarter, down from 61.2 million in the same quarter of last year.
The reasons for the decreases are falling demand in China and other emerging countries and competition from rival smartphones. In addition, the company from California has been affected by the high dollar. About 67 percent of sales are generated abroad.
Of course, the decrease does not affect Apple to a great extent. Apple’s chief executive Tim Cook said the company performed well, however, he also regarded it as “a challenging quarter.”
“Despite the pause in our growth, our results reflect excellent execution by our team despite strong macroeconomic headwinds in most of the world,”
Mr. Cook on a conference call Tuesday.
“It’s a tough bar to hurdle, but it doesn’t change the future. The future is very bright,”
The net profit still amounted to 10.5 billion dollars, though less from $ 13.6 billion in the first three months of 2015.