Wednesday, April 27, 2016
Associated Press
SAN FRANCISCO
Apple sold more than 51 million iPhones in the first three months of this year – and that’s the problem.
That’s 10 million fewer iPhones than the tech giant sold during the same quarter a year ago. As a result, Apple on Tuesday reported its first drop in quarterly revenue in 13 years – and the first-ever year-over-year decline in iPhone sales.
The slide is putting more pressure on Apple and CEO Tim Cook to come up with its next big product.
Cook, of course, has problems many corporate bosses would kill to have. Despite the decline in sales, Apple managed to rack up $10.5 billion in profit for the quarter.
“The future of Apple is very bright,” Cook told analysts on a conference call Tuesday.
But Apple is battling perceptions that its latest iPhones aren’t that different from previous models, at a time when overall smartphone sales are slowing around the world. Apple also sells iPads, Mac computers and other gadgets, but nearly two-thirds of its $50.6 billion in quarterly revenue came from iPhones.
“They need to come out with that next great product,” said Angelo Zino, a financial analyst with S&P Global Market Intelligence.