IPhone sales drop may stifle Apple profits

Apple CEO Tim Cook speaks at an event to announce new products at Apple headquarters in Cupertino Calif. On Tuesday

Sales were generally down across all categories with Apple selling "only" 51.2 million iPhones, a 16% down from the 61.2 million that they sold in the corresponding quarter last financial year.

Apple sold a total of 51.1 million iPhones in the quarter, they also sold a total of 10.2 million iPads and 4 million Macs.

It appears that Ming-Chi Kuo has predicted many things over the years about the Cupertino company's iPhone sales, most of which were laughed off as insane conspiracy theories. The stock is down more than 5 percent since April 13, and last week, Google parent Alphabet Inc (GOOG) (GOOGL) and Microsoft Corporation (MSFT) lost $30 billion in market value after their earnings updates.

Cook compared India with China, which is Apple's biggest market outside the US. Zino said that while he is optimistic about the company's future, "Apple absolutely needs to start diversifying their revenue base".

We've watched the decline in iPad sales quarter after quarter - 19 percent this time - but iPhone?

First quarter of 2015: 4.6 million First quarter of 2016: 4 million, down 12%.

Cook, addressing analysts in a conference call after the company posted decline in revenues for the first time in 13 years, said while India presents a "really great opportunity" for the company, slow networks and the informal retail structure across the country is holding the company back from realising its full potential. "He attributed the slump to short-term factors such as the strong dollar, hard economic conditions, and hard comparisons for iPhone sales". Apple had been outpacing the overall industry, but this is the second straight quarter in which Mac sales performed worse than the overall PC market.

However, the performance of Apple's Services division, which includes sales of apps and music, was a positive note for the tech giant. As a result, the company's quarterly profit for the period ending March 26 fell by 22.5 per cent. We've been working in India now for a couple of years or more, but we've been working with great energy over the last 18 months or so, and I'm encouraged by the results that we're beginning to see there, and believe there's a lot, lot more there.

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