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| Apple revenue falls for first time since 2003 | Apple revenue falls for first time since 2003 |
| (about 13 hours later) | |
| Apple reported a 13% drop in its second quarter revenue on Tuesday as sales of iPhones slipped. | Apple reported a 13% drop in its second quarter revenue on Tuesday as sales of iPhones slipped. |
| The technology giant reported quarterly sales of $50.56bn (£34.39bn) down from $58bn last year - the first fall in sales for the company since 2003. | The technology giant reported quarterly sales of $50.56bn (£34.39bn) down from $58bn last year - the first fall in sales for the company since 2003. |
| Apple sold 51.2 million iPhones during the quarter, down from 61.2 million in the same quarter of 2015. | Apple sold 51.2 million iPhones during the quarter, down from 61.2 million in the same quarter of 2015. |
| China was a particular weak spot - sales there fell 26%. Results were also hit by the impact of a stronger dollar. | China was a particular weak spot - sales there fell 26%. Results were also hit by the impact of a stronger dollar. |
| Apple shares fell 8% in after hours trading. Its shares have fallen close to 20% over the last twelve months. | Apple shares fell 8% in after hours trading. Its shares have fallen close to 20% over the last twelve months. |
| Apple's chief executive Tim Cook said the company performed well "in the face of strong macroeconomic headwinds". | Apple's chief executive Tim Cook said the company performed well "in the face of strong macroeconomic headwinds". |
| Analysis: Dave Lee, North America business reporter | Analysis: Dave Lee, North America business reporter |
| Slowing sales in established markets hasn't been too much of a problem for Apple, as China has always been there to prop up its earnings and keep it posting quarter after quarter of record breaking profits. | Slowing sales in established markets hasn't been too much of a problem for Apple, as China has always been there to prop up its earnings and keep it posting quarter after quarter of record breaking profits. |
| But with revenues in China taking a hit, the whole company suffers. | But with revenues in China taking a hit, the whole company suffers. |
| The iPhone - the most successful technology product in history - is now officially in decline. The company had warned as much three months ago, but to see the numbers for real will give investors cause for concern. | The iPhone - the most successful technology product in history - is now officially in decline. The company had warned as much three months ago, but to see the numbers for real will give investors cause for concern. |
| Some have been calling recent events a sign that we're coming to the end of a golden age for hardware makers. The smartphone boom is past its extraordinary peak. | Some have been calling recent events a sign that we're coming to the end of a golden age for hardware makers. The smartphone boom is past its extraordinary peak. |
| Apple, perhaps more than any other company, needs the next blockbuster category to come along. The Apple Watch is bringing in an estimated $1bn each quarter, but that's not enough. It needs another smash like the iPhone. But there's no sign of one coming any time soon. | Apple, perhaps more than any other company, needs the next blockbuster category to come along. The Apple Watch is bringing in an estimated $1bn each quarter, but that's not enough. It needs another smash like the iPhone. But there's no sign of one coming any time soon. |
| What should Apple do next? | |
| Apple should pay more tax, says co-founder Wozniak | Apple should pay more tax, says co-founder Wozniak |
| China shuts Apple's film and book services | China shuts Apple's film and book services |
| Ford: 'We assume Apple is working on a car' | Ford: 'We assume Apple is working on a car' |
| Apple's quarterly profit slipped to $10.5bn from $13.5bn. | Apple's quarterly profit slipped to $10.5bn from $13.5bn. |
| Nevertheless, it announced it would return $50bn to shareholders through an increase in share buybacks and a 10% increase in quarterly dividends. | Nevertheless, it announced it would return $50bn to shareholders through an increase in share buybacks and a 10% increase in quarterly dividends. |
| Sales slowdown | Sales slowdown |
| Back in January the company warned that it was experiencing its slowest-ever increase in orders for iPhones and that this would cut into second quarter earnings. | Back in January the company warned that it was experiencing its slowest-ever increase in orders for iPhones and that this would cut into second quarter earnings. |
| Declining growth in smartphone sales has had an impact on the entire industry and companies are struggling to find the next area of innovation. | Declining growth in smartphone sales has had an impact on the entire industry and companies are struggling to find the next area of innovation. |
| "The industry is in a lull between the mobile boom and what comes next in automotive, the connected home, health and industrial applications of the internet of things," said Geoff Blaber, from CCS Insight. | "The industry is in a lull between the mobile boom and what comes next in automotive, the connected home, health and industrial applications of the internet of things," said Geoff Blaber, from CCS Insight. |
| One bright spot for Apple was its services unit, which includes App Store downloads, Apple Pay and Apple Music. The division experienced a 20% growth compared with the same quarter in 2015. | One bright spot for Apple was its services unit, which includes App Store downloads, Apple Pay and Apple Music. The division experienced a 20% growth compared with the same quarter in 2015. |
| However, growth at that unit could be threatened by a new law in China passed in March. It requires all content shown to Chinese people to be stored on servers based on the Chinese mainland. | However, growth at that unit could be threatened by a new law in China passed in March. It requires all content shown to Chinese people to be stored on servers based on the Chinese mainland. |
| As a result Apple's iBooks and iTunes movies service were shut down in the country. | As a result Apple's iBooks and iTunes movies service were shut down in the country. |
| Apple said it hoped access to the services would be restored soon. | Apple said it hoped access to the services would be restored soon. |
| Apple vs. FBI | Apple vs. FBI |
| Apple was recently in a standoff with the US government over whether the company should help the FBI unlock an iPhone. | Apple was recently in a standoff with the US government over whether the company should help the FBI unlock an iPhone. |
| The FBI wanted Apple to build a program to unlock the iPhone of San Bernardino shooter Syed Rizwan Farook. | The FBI wanted Apple to build a program to unlock the iPhone of San Bernardino shooter Syed Rizwan Farook. |
| Apple refused, calling the government's order a violation of its rights. The FBI eventually turned to outside hackers to break into the phone. | Apple refused, calling the government's order a violation of its rights. The FBI eventually turned to outside hackers to break into the phone. |