Apple posted their Q2 2016 earnings today, and things aren’t looking great for investors.
That’s because the company revealed a year-over-year decline in its revenue, the first time it has failed to grow revenue in 13 years, bringing in a total of 50.8 billion in revenue for the quarter (last year’s quarter was $58 billion), and $10.5 billion in profit (last year’s quarter was $13.6 billion).
That’s quite a substantial 13 percent drop in revenue.
That all said they are still on of the most valuable and profitable companies in the world.
That revenue breaks down to 51.2 million iPhones sold in the quarter, 10.3 million iPads and 4 million Macs, they also made $2.2 billion in revenue from their other products on top of that, however, as usual, they did not announce specifics on device sales.
In last year’s quarter, Apple sold 61.1 million iPhones, 12.6 million iPads, 4.6 million Macs and $1.7 billion Other products, meaning in this quarter sales were down for the iPad and Mac, but up for both the iPhone and Apple’s Other products, which include everything from Beats to the Apple Watch.
Probably the most interesting figure is the decline in iPad sales, especially after the company released the iPad Pro in the quarter (the smaller 9.7 inch version was released at the end of the quarter, so that is not included), Apple also recently updated their MacBook range, which also seen a decline. The big decline, and probably the reason for the reduction in revenue is that in iPhones, with around a 10 million decrease from last year’s quarter. That said, much like the iPad Pro 9.7, the iPhone SE was not released until the end of this quarter.
As you can see from the charts above, this quarter is a huge decrease from previous second quarter results, so it will be interesting to see how investors react.