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| Apple sees iPhone sales drop again but beats forecasts | Apple sees iPhone sales drop again but beats forecasts |
| (about 1 hour later) | |
| Apple has reported a second consecutive quarter of falling iPhone sales, but the 15% drop was not as bad as analysts had feared. | Apple has reported a second consecutive quarter of falling iPhone sales, but the 15% drop was not as bad as analysts had feared. |
| The US tech giant sold 40.4 million iPhones in its third quarter, slightly above forecasts of 40.02 million. | |
| Apple chief executive Tim Cook said the results reflected "stronger customer demand... than we anticipated". | Apple chief executive Tim Cook said the results reflected "stronger customer demand... than we anticipated". |
| The firm said it expected sales to fall again in the fourth quarter to between $45.5bn (£34bn; €41.4bn) and $47.5bn. | The firm said it expected sales to fall again in the fourth quarter to between $45.5bn (£34bn; €41.4bn) and $47.5bn. |
| Demand for Apple's flagship product has been slowing since the second quarter when the firm reported the first drop in iPhone sales since their 2007 launch. | Demand for Apple's flagship product has been slowing since the second quarter when the firm reported the first drop in iPhone sales since their 2007 launch. |
| The iPhone makes up for around two-thirds of Apple's sales and accounts for even more of its profits. | The iPhone makes up for around two-thirds of Apple's sales and accounts for even more of its profits. |
| The slowdown in iPhone sales sent profit down 27% to $7.8bn in the three months to 25 June, while revenues fell 14.6% to $42.4bn. | The slowdown in iPhone sales sent profit down 27% to $7.8bn in the three months to 25 June, while revenues fell 14.6% to $42.4bn. |
| Apple's sales in Greater China - defined by the company as China, Hong Kong and Taiwan - plunged 33%. | Apple's sales in Greater China - defined by the company as China, Hong Kong and Taiwan - plunged 33%. |
| The firm blamed economic uncertainty and people not upgrading their phones as often for the drop. | The firm blamed economic uncertainty and people not upgrading their phones as often for the drop. |
| China accounts for almost a quarter of Apple's sales, more than all of Europe combined. | China accounts for almost a quarter of Apple's sales, more than all of Europe combined. |
| "It is very clear that there are some signs of economic slowdown in China, and we will have to work through them. | "It is very clear that there are some signs of economic slowdown in China, and we will have to work through them. |
| "We understand China well and we remain very, very optimistic about the future there," said Apple chief financial officer Luca Maestri. | "We understand China well and we remain very, very optimistic about the future there," said Apple chief financial officer Luca Maestri. |
| Apple shares surge | |
| Results were also hit by the impact of a stronger dollar. | Results were also hit by the impact of a stronger dollar. |
| Nonetheless, shares, which have fallen almost 20% over the past year, rose over 7% in after-hours trading because the firm's overall performance was not as bad as analysts had expected. | Nonetheless, shares, which have fallen almost 20% over the past year, rose over 7% in after-hours trading because the firm's overall performance was not as bad as analysts had expected. |
| Mr Maestri said comparisons to the second quarter last year, when iPhone 6 sales surged 35%, made its performance seem worse than it was. | |
| He also pointed to its services business, which includes the App Store, Apple Pay, iCloud and other services, as a bright spot. | |
| The division made nearly $6bn in revenue, up 18.9% from the same time last year, and is now the firm's second-largest sales generator after the iPhone. | |
| The shift is good news for the firm because it allows it to make more money from its existing users. |