Apple Incâ€™s Revenue Drops for the Second Consecutive Quarer on iPhone Slump
Tuesday, in its quarterly earnings report, Apple Inc. said profit dropped twenty seven percent in the fiscal third quarter which ended on June 25.
The company is still struggling with the drop in iPhone sales which is the first prolonged slump of its kinds since 2007, when iPhone was introduced.
This was the second consecutive quarter noting a drop in revenue and also marked a slum in sales of smartphone. However, numbers are expected to be better in the quarter that ends in September.
Apple's net income in Q3 was $7.8 billion a slide from previous year's $10.68 billion. Earnings per share also dropped to $1.42 compared $1.85. The company's revenue slipped $42.36 billion or 14.6% from last year's $49.6 billion. However, the numbers were slightly better than the analysts' expectation of $1.38 a share earnings on $42.1 billion revenue.
The lower cost, $399 handset unveiled in March seems to be gaining attention of users and that is counter balancing a decline in sales and relieving some investor concerns regarding growth.
When unveiled, the lower cost handset had drawn some criticism as it was still considered too expensive for customers in the emerging markets. It was said that, the product has potentials to trim down profitability in the developed markets as customers would favor the costlier and higher end models.
However, it did not turn out to be that was and SE proved make a considerable portion in the company's earnings report.