Quarterly reports have revealed that Apple earnings have declined for the first time in thirteen years, loosing over $3 billion USD in revenue.
Despite making $50.6 billion USD in revenue last quarter, Apple earnings have fallen from a 13 year winning streak, leaving the company to see its first decline since 2003.
Apple CEO Tim Cook remained upbeat about the company’s losses, citing the firm’s last quarter as a “busy and challenging” period.
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Despite the company’s losses, the firm still sold 51.1 million iPhones, 10.2 million iPads and 4 million various Mac computers.
Those sales amount to a whopping $10.5 billion profit from January until the end of March, but that figure is behind what the company earned last year; the comparative financial quarter in 2015 saw the company yield $13.6 billion USD in profit.
Put through the calculator, this amounts to a 13% revenue drop.
Apple’s expansion into China has injured the company, which saw a 26% decline in revenue – a similar trend across all regions of the world save for Japan, which saw 24% growth.
Apple isn’t alone in seeing a revenue dip; Microsoft’s latest financial statements revealed the dire straits the company’s mobile divisions are in, leaving many to speculate that the Redmond firm could end its Lumia line once and for all.
Despite seeing a revenue dip and its 13 year winning streak end, Tim Cook cited that the conversion from Android to iPhone users is at an all time high, and that its new businesses in services – iCloud and Apple Music subscriptions – are booming.
Interestingly, the company declined to extrapolate on Apple Watch sales, listing the wearable’s revenue into “Other Products”. Cook has previously stated, however, that Apple Watch sales exceeded the sales of the iPhone in its first year.
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What are your thoughts? Does this point to ominous tidings for Apple? Be sure to let us know in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
