On Tuesday, Apple Inc reported its first decline in sales of iPhone. It also posted the first drop in revenue since 2003.
In China, the sales from the company went down by over a quarter. It has also fore casted a disappointing global revenues quarter.
The company’s shares declined by about 8%. This is the lowest recording as it went below $100 since February. The investors were not mollified by the hike in buyback and dividend as well as the bumper revenue.
The results have been recorded after a disappointing performance by Microsoft Corp and Google’s Alphabet Inc and also the micro blog Twitter.
Apple said it sold 51.2 million iPhones in its second fiscal quarter, down from 61.2 million in the same quarter a year ago but above analysts’ estimates of about 50 million devices.
As much as Apple had predicted that the sales would go down this quarter, they must reassure the investors that the decline represents a monetary roadblock rather than a shift in the product that fuelled most of its earnings.
After selling for many years, there are fears that Apple’s iPhone has reached its maximum and this would mean it’s the end of Apple’s exponential growth.
“Apple needs to come up with a radical new innovation or product rather than just the current incremental improvements to existing products. This is the only way in which it will reinvigorate sales growth,” said Neil Saunders, chief executive of research firm Conlumino.
Tim Cook has made suggestions that more iPhones are on the way. He said that “The future of Apple is very bright. Our product pipeline has amazing innovations in store.”