Much of the falloff is attributable to the stuggling Chinese economy, still the second-largest market in the world for Apple products behind the US
Apple shares dropped on Tuesday afternoon after the company reported a nearly 13% fall in quarterly sales, the first time revenue at the worlds most valuable publicly traded company has declined in 13 years.
As of publication time, shares were down more than 7% without appearing to hit bottom. Revenue was predicted by Apple itself to fall between $50bn and $53bn it came in on the low end of that range, with a final tally of $50.6bn, a 13% drop.
Apple said the decline would continue, predicting revenue between $41bn and $43bn for the June quarter.
The company had warned investors to brace for impact. The iPhone accounts for nearly 2/3 of Apples revenue and the company sold 16% fewer iPhones than it had during the same period in 2015 and made 18% less money from them. The total tally for the device was $32.9bn from 51.2m phones sold the year previous Apple brought in $40.3bn from 61.2m phones.
Despite the pause in our growth, our results reflect excellent execution by our team despite strong macroeconomic headwinds in most of the world, said Tim Cook, Apples CEO.
Much of the falloff was attributable to the struggling Chinese economy. The nations consumer technology sector is in flux, as is the yuan. Still the second-largest market in the world for Apple products behind the US, the Chinese segment of Apples dismal report declined by more than a quarter of its value. The business made $18.4bn in China in the second quarter of 2015; in the previous three months it made $12.5bn.
Annette Zimmerman, research director at tech research and advisory company Gartner wrote last month that the problem was not Apples alone, pointing out that the entry price of a smartphone in the developing world was still a barrier, even among very inexpensive devices.
Vendors were not able to reduce the price of a good enough to use smartphone lower than $50, Gartner wrote.