Jump directly to the content
END OF AN ERA

Are we falling out of love with the iPhone? Sales drop for first time since device’s launch in 2007

Industry experts say the decline in iPhone sales is down to an increasingly saturated smartphone market

Apple's revenue has tumbled for the first time since 2003 with 'smartphone market saturation' being blamed

IPHONE sales have dropped for the first time in Apple's history as the company battles fierce competition and its first decline in revenue since 2003.

iPhone sales - which make up more than half of Apple's revenue and is crucial to their success - fell for the first time since the device was launched in 2007, dropping from 61 million to 51 million.

The tech giant also suffered a 13 per cent drop in second quarter revenue in 2016, recording the first fall in sales since 2003.

The company has suffered its first drop in revenue for 13 years
2
The company has suffered its first drop in revenue for 13 years

Industry experts have suggested the decline in iPhone sales is down to an increasingly saturated smartphone market, as competiton increases from rivals like Samsung, HTC and Google.

Jan Dawson at Jackdaw Research said: "Following a rapid expansion into new markets over the years from 2007-2011, Apple was approaching saturation of the available distribution channels, and many of those already in the smartphone market who could afford to buy an iPhone had one or one of its high-end Android competitors."

To counter this, Apple updated their smaller 4in iPhone by launching the iPhone SE in March, aiming the device at emerging markets in China and India.

However, Apple particularly suffered in China where sales nosedived by 26 per cent.

The company’s share price also tumbled by more than eight per cent to $95.72.

CEO Tim Cook said: "Our team executed extremely well in the face of strong macroeconomic headwinds.

“We are very happy with the continued strong growth in revenue from services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices."

Apple additionally announced it would return $50bn to shareholders through an increase in share buybacks and a 10% increase in quarterly dividends.

Sales were up 56 per cent in India with Cook saying: "I view India as where China was eight or 10 years ago, and think there is great opportunity there.

"I think China is not weak.

"We may not have the wind at our backs that we want, but it is a lot more stable than what I think is the common view of it."

In more positive news for the company its sales in India have increased
2
In more positive news for the company its sales in India have increased

Other boosts for the tech giant were boosts in App Store downloads and high uptake of new services Apple Pay and Apple Music.

Over the previous four quarters the company also confirmed it had bought no fewer than 15 companies.

Apple is rumoured to be releasing its iPhone 7 some time this year.

LOGO_machibet_200x200

Machibet

star star star star star 4.9/

6,000.000+downloads/Free/Bengali/Version2.3.4

777 BDT IPL 2025 Sports First Deposit Bonus

  • 5,000 BDT Daily Reload Bonus
  • Boost Your First Deposit with a 300 BDT Bonus
  • 100% First Deposit Refund Bonus up to 5,000BDT
bKash bank OK Wallet upay
PLAY NOW
Free Bonus
Download For
android