Apple reports fall in iPhone sales as buyers await 10th anniversary iPhone going out in September
Revenue from Greater China falls 14.1 per cent, but Apple believes performance will get better
Apple reported a surprise fall in iPhone sales for the second quarter on Tuesday, indicating that customers had held back purchases in anticipation of the 10th-anniversary edition launch of the company’s most important product.
The company boosted its capital return programme by US$50 billion, increasing its share repurchase authorization by US$35 billion and raising its quarterly dividend by 10.5 per cent.
“There is a general softening in phone demand to contend with as well as expectations of a big upgrade, all of which softens the blow of this quarter’s miss,” said James McQuivey, a Forrester Research analyst. “If we see Apple downplaying expectations before the next upgrade cycle, it might mean that the company isn’t confident it will beat those expectations.”
Apple’s revenue from the Greater China region fell 14.1 per cent to US$10.73 billion in the quarter, as cheaper rivals in the region chipped away at sales.
Apple chief financial officer Luca Maestri said that sales of Macs and the company’s services were strong in China during the March quarter. “The performance we’re seeing in China should get better going forward this year,” he said.
