Technology heavy weight Apple has announced its results for the third quarter amid dropping its flagship iPhone sales and revenue, however company’s sales still managed to beat predictions made by the analysts.
According to the official figure, Apple vended 45.51 million iPhones in the three months to 24 September, thrashing an average estimate of 44.8 million.
The iPhone maker-company also gave an outlook of higher-than-expected holiday season revenue of between $76 billion and $78 billion.
Meanwhile revenue in the fourth quarter dropped 9% to $46.85 billion. In the result company’s annual revenue dropped for the first time since 2001, underlining a slowdown in the smartphone market as well as growing competition, particularly from Chinese competitors.
This news was not a massive bombshell that Apple saw its first drop in annual revenues for 15 years. It was quite evident earlier in the year that sales of the iPhone, surely the most money-making product in history, had plunged and they continued to disappoint this quarter. It was hard to spot any product or market delivering better results, the fact that Apple still hasn’t released any figures for its Watch tells its own story, and the 30% fall in China sales looked predominantly upsetting.
Even then Apple’s Chief Executive Tim Cook still looked quite upbeat. He highlighted the 24% surge in revenues from services like Apple Music and Apple Pay. He also was ecstatic with the response of consumers to the iPhone 7 across the globe, including in China, demand was exceeding supply.
Furthermore he also is optimistic for the growth in the next quarter, with Apple predicting a record-breaking holiday season. Investors have been looking for reasons to buy back into Apple and that prediction may help continue the recent upward path of the shares.
In the meantime Apple executives also said that the demand for the new iPhone 7 surged, despite fiscal fourth-quarter revenue falls in China and the Americas, its two most important markets.
Apple’s income from Greater China, once considered as Apple’s next growth hope, dropped 30% in the period, after plunging 33% in the previous period. Last year in the third quarter, revenue from Greater China almost doubled.