Apple Hits a Rough Patch – iPhone Sales Take a Record Tumble
In a surprising shake‑up, Apple reported a 17% slide in iPhone revenue for the first quarter ending March, bringing earnings down to just $31 bn—a stark drop from the same period last year.
Why the Numbers Fell
- Price war in China: Apple cut prices in the Chinese market to keep up with cheaper rivals like Xiaomi and Huawei.
- Tax tweaks: Lowered iPhone taxes and new trade deals in China helped stabilize sales.
- Even with these moves, sales in China still trailed by 20%.
Apple’s Response
CEO Tim Cook said the company felt strong near the end of March, noting that Apple’s service segment hit a new all‑time record and that wearables, home & accessories kept the momentum going.
He added, “We’ve built an installed base of over 1.4 billion active devices—our ecosystem is stronger than ever.”
Forecasts and Analyst Opinions
- Apple now expects 3‑month revenue for the next quarter to be between $52.5 bn and $54.5 bn.
- Last year’s March‑period sales hit $58 bn, with analysts projecting $57.3 bn.
- Notably, $61.1 bn was the forecasted figure for Q2 2018—so both current figures and projections are below expectations.
Principal analyst Yoram Wurmser from eMarketer warned that Apple’s long‑term growth still hinges largely—including indirectly—on iPhone sales.
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