Apple Revenue Down For First Time Since 2003 On iPhone Sales Decline
UPDATE with additional details from earnings call: Apple today reported second-quarter revenue of $50.6 billion and earnings-per-share of $1.90 for the period ending March 26. Both numbers come below Wall Street estimates for the tech giant, thanks to a slowdown in iPhone sales that are the company’s core driver. It also offered Q3 guidance on revenue that is even lower, between $41B-$43B. The Q2 number marked Apple’s first quarterly revenue decline since 2003.
In Q2 2015, Apple reported $58 billion and $2.33 per diluted share. Shares are down almost 8% in after-hours trading on the earnings news. Apple stock has fallen about 20% over the past year and ended today at 104.35.
Apple said it sold 51.2 million iPhone units in Q2, better than what was expected but down from a year ago’s 61.2M units — the first time that has happened. CEO Tim Cook said on the post-earnings analyst call that while the smartphone market is “not growing, we’re optimistic that this too shall pass,” citing strong numbers of consumers switching to the iPhone platform during the quarter amid the optimism.
The company also said today its board of directors has authorized an increase of $50 billion to the program to return capital to shareholders. Apple said it plans to spend a cumulative total of $250 billion of cash by the end of March 2018.
Mac sales were also down, by 12%.
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