April 27, 2016
Apple disappointed its investors Tuesday night after posting its first decline in revenue in more than a decade.
The iPhone maker posted second quarter revenue of $50.6 billion, down from $58 billion in the year-ago quarter and missing analysts estimates by $1.4 billion. Wall Street was expecting revenue of $52 billion and earnings per share of $2. Apple’s actual earnings per share came in at $1.90.
Despite failing to meet expectations, Apple CEO Tim Cook put a positive spin on things.
“Our team executed extremely well in the face of strong macroeconomic headwinds,” Cook said in a press release. “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 over one billion active devices.”
While the company did surpass expectation of iPhone sales, the Cupertino firm is down a lot since this time last year: from 61.2 million to 51.2 million. iPad sales also dropped from 12.6 million last year to 10.3 million while Mac sales were down to four million units compared to 4.6 million.
The news caused the firm’s stock to dip eight percent as investors showed their displeasure over Apple’s lack of second quarter growth.
Despite the slowing of sales, Cook is staying optimistic.
“The future of Apple is very bright,” he said during an earnings call with investors and analysts. “Our product pipeline has amazing innovations in store. We’re very excited about bringing together developers for our four major platforms at our Worldwide Developers Conference in June. We are forging ahead with important investments in research and development, in our infrastructure, and in our supply chain. We’ve made 15 acquisitions in the last four quarters to accelerate our product and Services roadmaps, and we’re always on the lookout for companies with great technology, talent, and strategic fit.”
Apple is predicting revenue of between $41 billion and $43 billion for its third quarter.
Jennifer Cowan is the Managing Editor for SiteProNews.