Apple sales fall 13 per cent in first quarterly revenue decline in 13 years
Apple Inc. reported a 13 per cent drop in sales – its first quarterly decline in revenue since 2003 – on Tuesday.
The world’s most valuable public company posted a revenue of $50.6 billion in the second quarter of fiscal 2016. This compares with $58bn in the corresponding period a year earlier.
The technology giant made a net income of $10.5bn during the period under review, down from $13.6bn in the same quarter a year ago.
Apple sold 51.2 million iPhones during the quarter, down from 61.2m in the same quarter of 2015.
Apple CEO Tim Cook attributed the decline in sales to “strong macroeconomic headwinds.”
The grim global economic outlook has impacted the growth of Smartphone sales. Cook said that the Smartphone market “is currently not growing.”
The Cupertino, California-based company, which depends upon almost all of the global markets, has suffered greatly from the economic growth challenges in China, in particular, where sales plunged 26 per cent.
The strong US dollar against major currencies has also dogged Apple as its exports became more expensive for foreign markets.
However, the company announced it would return $50bn to shareholders through an increase in share buybacks and a ten per cent increase in quarterly dividends.
“Despite the pause in our growth, our results reflect excellent execution by our team, despite strong macroeconomic headwinds in most [parts] of the world,” said Cook.
“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 more than one billion active devices,” he added.