Apple posts surprise fall in iPhone sales

So, around 15 percent of Apple’s total revenue came from it services business.

IPad sales for the second quarter of 2017 amounted to 8,922 and revenues of $3.8bn, compared with 10,251 units sold a year ago and revenues of $4.4bn.

The company reported profits of $11bn for the quarter, up from $10.5bn past year.

The decline could be down to users waiting for the launch of the 10th-anniversary edition later this year (iPhones are usually revealed to the world in September).

Drexel analyst Brian White noted, “We believe investors will be focused on the iPhone 8 this fall, along with the company’s raised capital distribution initiative, attractive valuation and potential new innovations”. Unit sales fell from 51.2 million phones to 50.8 million phones.

According to a senior analyst at Canalsys Tim Coulling, the Chinese smartphone market is highly competitive that offer cheaper products and are full of features similar to an Apple phone.

Sales of Macintosh computers did well in China, with revenue up about 20%, and the company’s retail shops were attracting visitors in what it saw as a good signal for its business there.

IPhone suffered its first declines previous year, and only managed to briefly return to growth in the quarter that the iPhone 7 first launched.

Get used to Apple’s less-turbocharged future. He added that seven of the company’s most popular stores are in China. Apple may be about to blow past the 10th anniversary of its first-ever iPhone without releasing a major overhaul to its iPhone lineup. Aesthetically, Apple is expected to adopt an edge-to-edge display, similar to the Samsung Galaxy S8, and could potentially embed the home button underneath the screen, or move it to the rear of the device.

Apple sold 50.8 million iPhones in the second quarter.

The plight of the iPad continues to be grim, with sales falling for another quarter down to 8.9 million units, which is a drop in a year in unit sales of 13 per cent and 12 per cent in revenue. About 500 million to 600 million iPhones are out there in the world, according to Mizuho estimates.

An Apple iPhone 7 and the company logo are seen in Bordeaux, France, in February. Gross margin guidance also details a sequential decline of 40 to 140 basis points, which isn’t much of a surprise as new iPads are likely lower margin and iPhone sales dry up a little. The iPhone has run out of growth, and it’s not clear that driverless cars, streaming videos or anything else can fully pick up the slack. The company is also sitting on more $250 billion in cash. At the end of the quarter, Apple held $256.8 billion in cash, and investors are demanding that Apple deploy it either by distributing a huge one-time dividend, or by making a huge acquisition.

Even with the recent stock run-up, Apple barely trades like a growth stock.