iPhone sales declining despite unprecedented demand for 7 Plus
Sales of Apple’s iPhone have continue to slow, with the company’s latest financial results revealing a five per cent fall in comparison to the same quarter of 2015.
Yet despite the overall decline, Apple said it has been caught off-guard by how many people want to buy its biggest smartphone, the iPhone 7 Plus, and the miscalculation may hit profits this holiday season.
Chief Executive Tim Cook said it may not be able to make as many units of the iPhone 7 Plus as consumers want in time for the Christmas shopping rush, although it will be able to fulfil shipments of the smaller iPhone 7 models.
Apple warned of slide in its financial forecasts earlier this year as the smartphone market begins to reach saturation, with most consumers now owning a viable device and upgrading less frequently.
Total iPhone sales for the three months to September 24 2016 amount to more than 45.5 million units, a five million increase from the last quarter, but still down on the same period in 2015.
The firm’s total revenue for the quarter was $46.9bn (£38.4bn), down nine per cent on the same period last year.
However, Cook has chosen to focus on the success of Apple’s services business, Apple Pay and the company’s internet-based products, which grew more than 20 per cent on last year.
“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” he said.
“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 per cent to set another all-time record.”
iPad sales also continue to fall, dropping from 9.9 million in the last quarter to 9.3 million in the last three months.
The tech giant’s net income for the quarter was nine billion dollars (£7.3bn), and sales of Mac computers rose by 15 per cent on the last quarter, to 4.9 million units sold.
The next generation of Macs are due to be unveiled at a media event at the company’s Cupertino headquarters on Thursday, with a new MacBook Pro expected to lead the announcements.