Last time we checked in with Apple’s quarterly finances, we discovered a mixed bag of fortunes: yes, Apple was bringing in more money than ever before, but its once-unstoppable growth looked like it may have finally succumbed to a changing market, as iPhone growth ground to a halt. Ever since, we’ve been bracing for more mixed-to-not-great news, especially as predictions looked to declining iPhone shipments. Today the company share its latest figures, and revenues, profits, and iPhone sales are all down.
Quarterly revenue hit $50.6 billion, generating income of $10.5 billion. That’s significantly down from last quarter’s $75.9b/$18.4b figures, but the more concerning comparison might be to last year’s Q2 $58b/$13.6b breakdown. Sales of the iPhone are down to some 51.1 million units, and both that count and Apple’s revenue are on the lower side of expectations.
Despite that hit, Apple’s optimistic after what Tim Cook calls a “challenging quarter,” and there’s good reason for the company to have hope. After all, plenty of other aspects of its business are showing strong growth, from App Store revenue up 35 percent, to Apple Music subscribers numbering 13 million, to Apple Pay bringing on 1 million new users a week.
Still, Apple’s feeling realistic about its future prospects, and warns investors that its next quarter looks to be similarly lean, again showing an uncharacteristic decline: Apple expects to see revenues drop to the $41-43b range.